Somebody explain how this capital gains tax is a good idea...

[theiacowtipper]

The net “income is still income” has dropped with losses.

This is honestly one of the dumbest takes I’ve heard regarding income taxes.

Didn’t someone in this thread post that capital gains isn’t income?

 

[theiacowtipper]

It is not incone. It’s a capital gain. And how in the world does a capital loss have nothing to do with a capital gain? Good grief.

It shouldn’t be allowed to offset income.

 

[Hawgk]

Didn’t someone in this thread post that capital gains isn’t income?

Technically the IRS doesn’t define at as income. However, short term gains are treated and taxed the same as income.

 

[Hawgk]

It shouldn’t be allowed to offset income.

Yes, it should, but if not, capital gains shouldn’t be taxed either.

I’m all for finding ways to tax the ultra wealthy, but this is dumb.

 

[Hans81]

People invest in things like businesses and the stock market in order to make more money. There is a significantly higher return from those investments. That higher return would still be there.

I think I read that the mean, maybe mean, average return over the past 5 years is something like 15%. Are you arguing that people will forgo investing if there is a say 25% increase in capital gains taxes?

Some people would invest less with a higher capital gains tax.

 

[praguehawk]

Some people would invest less with a higher capital gains tax.

What do you believe they will do instead?

 

[billanole]

Yeah, just like when the income tax was first introduced in 1862 that levied a 3 percent tax on incomes between $600 ($18,554 today) and $10,000 ($309,239 today) and a 5 percent tax on incomes of more than $10,000 ($309,239 today). Look how that has creeped over time.

You actually trust these changes to capital gains taxes, or worse, a wealth tax to only impact the wealthy?

Obviously inflation had nothing to do with the bracket creep. An income between $600…
I guess you are being serious, although minimum wage was in the $2/hr range when I started.

 

[chonk]

I need more time with the proposal and the impacts to make a decision on it (although from purely a headline perspective it seems a little nuts). That said, I am all for some adjustments being made to how capital gains are handled. The pendulum has swung a bit too far to the “rich” and could use some review.

Why do so many people hate rich people…why not focus on yourself and others. You are cheering for the government over your fellow citizen, WTF. I guess it could be as the saying goes - if you envy success you will never achieve it.

 

[Hawki97]

Why do so many people hate rich people…why not focus on yourself and others. You are cheering for the government over your fellow citizen, WTF. I guess it could be as the saying goes - if you envy success you will never achieve it.

I actually love my rich self. I don’t hate rich folk at all.

 

[onlyTheObvious]

The rich will not sell. They will wait until the rates drop.

 

[Hawgk]

What do you believe they will do instead?

Depending on the delta between long-term gains and marginal tax rate, it could significantly affect how stocks are traded. If there’s little to no incentive to hold long, expect more options trading and more volatility. I don’t see disincentivizing buy-and-hold strategies as a good thing for a sustained and healthy market, but I could be wrong.