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Old 08-21-2017, 07:37 PM
 
2,360 posts, read 1,029,790 times
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So just proves the rich isnt spending at all, just hording and not helping anybody..

https://www.yahoo.com/finance/news/a...194733308.html



So instead of giving their employees raises or going out and buying things to help a company keeps their employees.. they are hording their money..
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Old 08-22-2017, 03:46 AM
 
62 posts, read 20,592 times
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I referenced a portion of this article in another thread. What is odd is that the same people who complain that they are paying too much in taxes seem to be endorsing/enabling this transfer of wealth to the very top. Once it arrives into the hands of the wealthy they do not really spend it, they build fortunes that are often exempt from income tax and pass it on to their heirs to build even bigger fortunes. If we eliminate the estate tax, then watch out, this will really accelerate.

It strikes me as odd that the middle class is happy to see people with enormous wealth only pay LTCG, while they are paying income tax at much higher rates. Especially when this is unearned income. Personally, I benefit from LTCG and suspect many others here do as well. But, at one percenter levels, it is not just a slight reduction in effective taxation, it is an entirely different, somewhat evasive, tax strategy.
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Old 08-22-2017, 05:54 AM
 
4,340 posts, read 4,430,352 times
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Quote:
Originally Posted by Bronn View Post
I referenced a portion of this article in another thread. What is odd is that the same people who complain that they are paying too much in taxes seem to be endorsing/enabling this transfer of wealth to the very top. Once it arrives into the hands of the wealthy they do not really spend it, they build fortunes that are often exempt from income tax and pass it on to their heirs to build even bigger fortunes. If we eliminate the estate tax, then watch out, this will really accelerate.

It strikes me as odd that the middle class is happy to see people with enormous wealth only pay LTCG, while they are paying income tax at much higher rates. Especially when this is unearned income. Personally, I benefit from LTCG and suspect many others here do as well. But, at one percenter levels, it is not just a slight reduction in effective taxation, it is an entirely different, somewhat evasive, tax strategy.
It's not really evasive because at one point it was taxed as ordinary income unless it was all inherited. If they are investing in companies they own a piece of that company, so the company is paying income taxes for them. If you owned a gas station should you have to pay taxes on the net income of the company and then pay taxes again as an individual owner of the company? If you work for the gas station you have to pay taxes on a reasonable wage, but you don't pay taxes twice on the income. I think 15-25% on qualified dividends and LTCGs is more than fair considering for most companies 25-35% is already being paid in corporate taxes.
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Old 08-22-2017, 07:39 AM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
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Quote:
Originally Posted by hitpausebutton2 View Post
So just proves the rich isnt spending at all, just hording and not helping anybody..

https://www.yahoo.com/finance/news/a...194733308.html



So instead of giving their employees raises or going out and buying things to help a company keeps their employees.. they are hording their money..
1. You criticize the wealthy for hoarding yet the article doesn't provide any evidence of hoarding.

2. You criticize the wealthy for hoarding but I suspect you would criticize them more for consumption.

3. Why in the world should employees receive raises that they have not earned and do not deserve?
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Old 08-22-2017, 07:46 AM
 
Location: Forests of Maine
29,729 posts, read 47,507,271 times
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To hoard wealth and "not helping anybody" that wealth must be in mason jars buried in the ground somewhere.

If your wealth is in stocks it is moving the economy.

If your wealth is in a bank, it is spent on loans [home mortgages, car loans, etc].

There are more ways to help the economy other than spending.
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Old 08-22-2017, 08:15 AM
 
2,771 posts, read 1,500,522 times
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Quote:
Originally Posted by hitpausebutton2 View Post
So just proves the rich isnt spending at all, just hording and not helping anybody..

https://www.yahoo.com/finance/news/a...194733308.html



So instead of giving their employees raises or going out and buying things to help a company keeps their employees.. they are hording their money..

ROTFL- You mean the rich *aren't* spending, and they are *hoarding*. Not sure who taught you how to write/spell
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Old 08-22-2017, 08:30 AM
 
Location: Forests of Maine
29,729 posts, read 47,507,271 times
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The primary 'wealth' that most Americans ever have is their home equity. To access that 'wealth' you must refinance your home mortgage, which means paying interest on it. Before you can spend any of it, you are first paying interest on that money.

For most Americans, this is not a smart move. There are only a few specific circumstances where refinancing to access that money makes any sense.

Last edited by Submariner; 08-22-2017 at 09:27 AM..
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Old 08-22-2017, 08:59 AM
 
Location: Living on the Coast in Oxnard CA
15,372 posts, read 25,586,306 times
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Wealth does not sit in a box somewhere. Wealth is employed. Wealth is out their producing. You say that the wealthy are not spending money. What should they be spending it on? You say that the wealthy should be paying people more. The article talks about 10 million men that are not even working. Pay them more? The market is saying that we have a lot of people willing to work and not that many jobs. How do you pay people more when supply and demand state otherwise?

Wealthy spend money on opportunities to make more money. This opportunity is what creates jobs for others. Hoarding money is not something that the wealthy do. They know the value that a Dollar brings in. They expect their dollars to make them money. They want all their dollars working for them. These dollars are not sitting by the pool enjoying themselves. They are out there working. And when dollars work more people get jobs. That is just how things go.
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Old 08-22-2017, 09:04 AM
 
9,300 posts, read 4,742,807 times
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They have to reinvest their money somehow, they are not leaving the money in a money market.
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Old 08-22-2017, 09:32 AM
 
Location: NY/LA
3,081 posts, read 2,552,577 times
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Quote:
Originally Posted by damba View Post
ROTFL- You mean the rich *aren't* spending, and they are *hoarding*. Not sure who taught you how to write/spell
Everyone makes mistakes, although I'm amused by the imagery of the American elite riding horseback across the steppes of Central Asia, raiding small villages and hunting with falcons.
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