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Oh man. If you look at at your own link, you might notice that the the linked report is about the underground shadow economy. That has nothing to do with the matter discussed -- which is raising capital gains taxes on the wealthy.
In any case, the shadow economy for developed countries, according to your source, is 15% of GDP -- and that is illegal activity (drugs, illegal gambling, prostitution, etc.) So yes, drug dealers and prostitutes don't pay taxes. So what are you suggesting? That if we raise capital gains tax rates the rich will become drug dealers and prostitutes to avoid paying taxes?
You just can't be saying -- you just can't be -- that if we raise capital gains rates to what they were 30 years ago, rich people will somehow hide that gain in the underground economy. Newsflash: The vast portion of the capital gains tax is paid on stocks and real estate. Those transactions are heavily monitored and reported. They can't hidden into the underground economy.
I would contend that, it is your sir, who are embarrassing yourself as you make grasping for straws arguments because you can't win this argument on the facts and counter the evidence that I presented.
Your arguments are delving deeper and deeper into the absurd.
For the middle class investors, capital gains will be lowered to 10%, the rich will have their capital gains raised to 50%. Thoughts?
Stupid idea. Revenue from Cap Gains will drop as the wealthy will find other investments for their income. Even worse, the capital markets will dry up.
Instead of working feverishly in attempting to screw the rich, why don't you focus your efforts on the novel notion of HELPING AMERICA!!!!!!!
Revenue from Cap Gains will drop as the wealthy will find other investments for their income. Even worse, the capital markets will dry up.
How do you know that? In other words, where is your evidence? We had higher capital gains rates before. Did capital markets dry up? Did the rich find other investments? If so, what were they?
How do you know that? In other words, where is your evidence? We had higher capital gains rates before. Did capital markets dry up? Did the rich find other investments? If so, what were they?
Price of something goes up (in cost or taxes), sales go down. This is basic stuff.
One of the ways to clean up the mess in Wall Street may be to impose a tax structure that treats capital gains as income tax, for short term investments. The term could be anywhere from a year to five years or so. Then reduce the capital gains tax for investments on a progressive basis, the longer you hold, the less you pay in taxes. Perhaps even establish a distinction between traders and investors, for sake of restoring sanity.
One of the ways to clean up the mess in Wall Street may be to impose a tax structure that treats capital gains as income tax, for short term investments. The term could be anywhere from a year to five years or so. Then reduce the capital gains tax for investments on a progressive basis, the longer you hold, the less you pay in taxes. Perhaps even establish a distinction between traders and investors, for sake of restoring sanity.
More tax code and regulations to implement same. I think not - wrong direction. How about a flat tax at the cap gains rate with only the basic deductions (home mortgage etc) and no earned income tax credits.
Price of something goes up (in cost or taxes), sales go down. This is basic stuff.
Capital gains tax is a tax on gains (profit.) What you are saying is that if there is an investment where someone can earn a profit, they'll choose not to make any profit (0%) because they have to pay a 50% tax. That makes no sense.
Personally, I rather earn 50% instead of 0%.
But again, you haven't produced any evidence, from historical data when capital gains was 50%, that what you said would happen, actually did happen in the real world.
Capital gains tax is a tax on gains (profit.) What you are saying is that if there is an investment where someone can earn a profit, they'll choose not to make any profit (0%) because they have to pay a 50% tax. That makes no sense.
Personally, I rather earn 50% instead of 0%.
But again, you haven't produced any evidence, from historical data when capital gains was 50%, that what you said would happen, actually did happen in the real world.
Listen, I can't spoon-feed you on "How the World Works - 101". The investments will go elsewhere - like tax exempt municipal bonds. I am not here to educate you on the fundamentals that you should already understand well, before you start posting with advice on how to fix a system (that you don't have a clue as to how it works).
Witness the tax cuts under JFK (that would be John F. Kennedy). When the US lowered its tax rates, and England didn't, guess where the Stones and the Beates came (to the US) to avoid England's high taxes.
What doers tax and interest rate have to do with anything, you do understand that capital gains is relative to stock, real estate investments, collectables.
Quote:
Originally Posted by MTAtech
capitol gains hits almost everyone
No, only those who have sold assets that are subject to the tax. Most of those taxes fall on the upper brackets and particularly the top 1% -- but 50% of the capital gains income of the top 1% is concentrated in the top 0.1%. Poor people and most of the middle-class have near zero capital gains taxes, because they own little or no stock. Stock held in 401K plans are taxed as ordinary income when realized at retirement. Sales of primary residents are exempt.
Quote:
Originally Posted by MTAtech
Capital gains tax is a tax on gains (profit.) What you are saying is that if there is an investment where someone can earn a profit, they'll choose not to make any profit (0%) because they have to pay a 50% tax. .
you are wrong
my parents bought thier home in 1964 for 16k.. retired in 1989 and moved to another area, but kept the homes as my sister paid rent until she grad'd from college. sold the house in 2005 for 450k
they, a POOR ELDERLY COUPLE, got hit not only with the New Yorks state capital gains, but also the new york state 1% real estate tax, plus had to pay their new states capital gains tax..and then the fed screwed them
the very same house that they bought for 16k..was over 60k in taxes at selling time
dont tell me capital gains only effects the rich....because..if you do you are lying
More tax code and regulations to implement same. I think not - wrong direction. How about a flat tax at the cap gains rate with only the basic deductions (home mortgage etc) and no earned income tax credits.
Incorrect. Traders should not be confused for investors. Short term investment should not be treated as something beneficial and the primary purpose of Wall Street. Unless, crony capitalism is the thing to strive for.
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