... classifying taxable income and loss in three major categories: active, portfolio, and passive Active income consists mainly of wages, salaries, and bonuses; portfolio income is mainly interest and ... quite meaningful since the maximum tax rate on ordinary income in 2001 is 39.1% and on long-term capital gains is 20% Thus, Brad may have good reason to reject phantom stock and SARs and insist ... scheduled for repeal in 2010, but, under current law, will be reinstated in 2 011 344 Planning and Forecasting Redemptions to Pay Death Taxes and Administrative Expenses Since much of the money...