new tax law that created two new tax rates for higher-income taxpayers. The law was retroactive to January 1,1993. The tax rates are 15%, 28%, 31%, 36%, or 39.6%, depending upon taxable income. The 39.6% overall rate results from a 10% surtax for individuals having taxable incomes in excess of $250,000. However, if married and filing separately, taxable income must only exceed $125,000. The tax rate on capital gains is capped at 28%. The new law also taxes more social security benefits. It no longer allows club dues as  tax-deductible expenses.