What am I missing here? This seems like an incredibly stupid idea where the only people are can afford to have ahit are exorbitantly wealthy.
Somebody explain how this capital gains tax is a good idea...
- Thread starter Whiskeydeltadeltatango
- Start date
My understanding is Biden wants to increase the shit out of the capital gains tax. Up to 44%. Seems to me like the only people that ate going to have anything left are the people with big enough pockets to wade that and buy more.
What about a 44% capital gains tax is a good idea?
Also, I know very little about this, so I could be wrong, it also appears he wants to tax gains that have not even been recieved but COULD be. Is that right?
NAR. In the office and waiting for hurricane Des Moines to hit.
Biden Capital Gains Proposal Of 44.6% Comes With Caveats And Asterisks
The number being bandied about is 44.6%, which would be the highest formal federal capital gains rate since its inception.
www.forbes.com
Have not heard about this,.. But combine this with the Fed boosting interest rates and you'll see people start to move out of stocks...
It's incredibly bad, and very short sighted, and would harm everyone, not just the "rich". Any tax scheme that requires divesting assets to pay tax bills puts downward pressure on equity markets, which will kill IRA's and 401K's.
The part where unrealized gains will be taxed is likely unconstitutional, and we'll know that for sure at the end of the current SCOTUS term.
So this is when I need one of the super smart libs to explain how this is a great idea.
As someone who comes from nothing and has acquired some, this seems like a great way for me to not be able to afford shit I've already bought.
It would not affect you. It's a tax the rich plan. It's a proposal and has no chance to pass as a statute as drafted. They are trying to figure out ways to increase revenue.
Capital gains taxes should only come into play when the capital gain is realized.
I think they are trying to figure out ways to lose the White House,... talented group.
It ought to be treated as “income” and it is not….it is given the second lowest tax rate because it is “special”………Special only because the rich and wealthy have the means to access this type of income for the most part.
Nah- this policy isn't going to lose it for them. Except for chuckles that thinks the gains on his 150K home is going to be taxed at 44%. Trump promising the poor $50 per hour jobs making widgets and not more chinese products is going to win him the White House. Populist promises always sway the poor and poorly educated.
Anyone can experience capital gains if they have the discipline to not spend money, tie it up in an asset that appreciates, and then sell the asset for their capital gain. It's not just for rich people.
In fact, probably the biggest break the government gives to the non-rich is to allow them to pay 0% capital gains when they sell their primary residence. You can sell your primary residence and avoid paying capital gains taxes on the first $250,000 of your profits if your tax-filing status is single, and up to $500,000 if married and filing jointly."
My home is supposedly worth 350k more now than when I bought it.....
What is it about this that I shouldn't hate?
If you're single, you'd pay capital gains on The $100k or so above the $250k threshold for the capital gains exception. Not sure when these thresholds were last revisited, but I'd assume they'll be increasing those thresholds if we get a Republican back in charge.
from the forbes article linked above:
"Taken as a whole, then, the 44.6% rate would only come to fruition under a separate proposal from the Biden administration’s main capital gains rate increase, and only apply to those individuals with taxable income above $1 million and investment income above $400,000. That isn’t quite as cataclysmic a policy shift as referring to a blanket 44.6% long-term capital gains rate would suggest."
also...
"The policy proposal is much more incremental than revolutionary – aimed, albeit in a small way, at ensuring high earners contribute a fairer portion relative to their massive financial undertakings. Per a 2021 White House release, American billionaires pay an average individual income tax rate of just 8.2%, which might cast them as somewhat less deserving of victim status in the eyes of the average taxpayer. To combat that, policies that would curtail the ability for wealthy individuals to avoid a higher tax bill could employ fearmongering about skyrocketing capital gains rates for ordinary taxpayers."
"Taken as a whole, then, the 44.6% rate would only come to fruition under a separate proposal from the Biden administration’s main capital gains rate increase, and only apply to those individuals with taxable income above $1 million and investment income above $400,000. That isn’t quite as cataclysmic a policy shift as referring to a blanket 44.6% long-term capital gains rate would suggest."
also...
"The policy proposal is much more incremental than revolutionary – aimed, albeit in a small way, at ensuring high earners contribute a fairer portion relative to their massive financial undertakings. Per a 2021 White House release, American billionaires pay an average individual income tax rate of just 8.2%, which might cast them as somewhat less deserving of victim status in the eyes of the average taxpayer. To combat that, policies that would curtail the ability for wealthy individuals to avoid a higher tax bill could employ fearmongering about skyrocketing capital gains rates for ordinary taxpayers."
I read somewhere 44% is proposed for those with income over $1M/yr.
I’m okay with it in principle, but worry that it’s too aggressive and will be too much of a shock to the markets as the ultra wealthy shift money to other assets and those who aren’t ultra wealthy lose their asses. Maybe 25-30% for those earning more than $1M would more appropriate? Maybe $1M is even too low?
I’m okay with it in principle, but worry that it’s too aggressive and will be too much of a shock to the markets as the ultra wealthy shift money to other assets and those who aren’t ultra wealthy lose their asses. Maybe 25-30% for those earning more than $1M would more appropriate? Maybe $1M is even too low?
And capital losses should not be allowed to cancel gains or regular income. Thats the change I’d like to see made.
Because it has no chance of passing as it is right now. Also, you do realize this is for people that make more than $1 million, right?
This will not pass as is. I do, however, see maybe a 25-30% cap gains rate for higher income earners which I have no problem with.
You’re allowed a $3,000/yr max deduction that carries over and loses value over time. That’s nothing. If anything the max should be increased.
let's simplify it by taxing capital gains at the same rate as income/labor
And there are fewer of them than there are poors so the voting thing works well...
yes...because if anything is true about our tax code (and government in general) is that we need more influence and input from the most wealthy
Can't help but laugh at folks who think this would only affect the wealthy as written in the proposal. Name one scenario where rich people getting money taken from them didn't negatively impact those below them. If their costs go up - where do you think they are going to recoup that from?
I don't see anyway this goes through but even still read the fine print, would only affect individuals with 1 million of income and 400k of investment income.
Even still this is something that I am going to have to keep an eye on and how much gains I have on MSTR I very well may capture a decent chunk of capital gains at the end of 2024. Make sure there is no possibility I could hit those thresholds.
When you live off the government in some form or another...it and all taxes are the greatest thing ever. To an average work stiff, the suck.
Anyone who invests receive capital gains...it effects a lot of middle class folks as well.
Read the proposal, will not affect middle class folks as currently proposed . . .
we can't financially hurt the "job creators"
if we do, they won't bestow upon us the dignity and glory of labor and employment
Should be added to your signature, even though it’s understood by everyone on here.
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