40% Short Term Capital Gains tax -- a catastrophe? (insurance, buying, interest)
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The top 1 percentile of income starts at 700+k. So, over 1 million is in the top fraction of a percent...
I don’t know how you come to the conclusion that a million dollars of income isn’t a lot of money these days.
The 1 percentile might refer to income for just one year.
Actually, about 12% of U.S. households currently have accumulated net worths over $1 million. This is due to continual inflation steadily eroding the value of the dollar, combined with the stock market indexes having skyrocketed to all-time record highs.
The 1 percentile might refer to income for just one year.
The percentage of U.S. households with an accumulated net worth over $1 million is many times higher, especially with continual inflation having eroded the value of the dollar, and the stock market indexes having skyrocketed to all-time record highs.
Yes, but we’re talking about income.
$1,000,000 of net worth would still put someone into the top 10ish percentile. But again, I’m not sure what the relevance is.
And that’s a classic misinformation sound byte. If congress raises the corporate rate, it’s lowering the returns to investors, including pension funds and retirement accounts. In other words, tons of people under 400k are going to potentially be taxed more. This directly translates to less to live on, reduced job opportunity, more years working, ect.
Corporations are nothing more than conduits to flow thru money. It’s a tax timing difference.
There are many pension funds that have a buy and hold philosophy, which means any capital gains rate on short term holdings are irrelevant.
People are reacting to this as if it is a huge tax increase on all capital gains. It is a fairly minor increase in only short term capital gains. Similarly, any estate tax or similar has an exemption of $3.5 million per recipient. Two recipients means $7 million in exemptions, etc.
There are many pension funds that have a buy and hold philosophy, which means any capital gains rate on short term holdings are irrelevant.
People are reacting to this as if it is a huge tax increase on all capital gains. It is a fairly minor increase in only short term capital gains. Similarly, any estate tax or similar has an exemption of $3.5 million per recipient. Two recipients means $7 million in exemptions, etc.
The person I was responding to was talking about Biden’s overall plan idea and his claim, not just this one small subset on the capital gains.
There are many pension funds that have a buy and hold philosophy, which means any capital gains rate on short term holdings are irrelevant.
People are reacting to this as if it is a huge tax increase on all capital gains. It is a fairly minor increase in only short term capital gains. Similarly, any estate tax or similar has an exemption of $3.5 million per recipient. Two recipients means $7 million in exemptions, etc.
The current federal estate tax exemption is $11.7 million per estate.
The top 1 percentile of income starts at 700+k. So, over 1 million is in the top fraction of a percent...
I don’t know how you come to the conclusion that a million dollars of income isn’t a lot of money these days.
I thought we are talking about capital gains, not salary or wages. Lots of people during the housing bubble became $1mil-naires.
Quote:
Originally Posted by slowlane3
The 1 percentile might refer to income for just one year.
Actually, about 12% of U.S. households currently have accumulated net worths over $1 million. This is due to continual inflation steadily eroding the value of the dollar, combined with the stock market indexes having skyrocketed to all-time record highs.
Exactamundo, but I am sure its more than 12%. If Real Estate bubbles only affect 12% I doubt GFC be that big.
Are they really going to do this? Well, it was a campaign promise, and so far, Biden/Pelosi have done pretty much everything they promised and more.
They have said, cap gains for high earners over $1m will be considered regular income, and they're also planning to raise the top income tax rate to 39.6% (see link) so there you are -- nearly 40% cap gains.
My question is, why hasn't this sparked a huge sell-off in the markets? Have the smart money already fled the markets? And right now we're only seeing institutional and retail still in the market?
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they haven't even passed the stimulus yet and that's the only piece of legislation to cross his desk...lol put down the crack pipe.
And that’s a classic misinformation sound byte. If congress raises the corporate rate, it’s lowering the returns to investors, including pension funds and retirement accounts. In other words, tons of people under 400k are going to potentially be taxed more. This directly translates to less to live on, reduced job opportunity, more years working, ect.
Corporations are nothing more than conduits to flow thru money. It’s a tax timing difference.
And there are lots of good reasons to tax Corporations.
1) Evil Corporations like Boeing that contribute to climate change. Tax them...raise the cost of airplane travel and save the planet in nine years.
2) Efficient Corporations like Amazon. Tax them..they collect tax revenue at lower cost than the government. Better have Amazon collect tax revenues than the government. Greater benefit to society.
3) Tax Corporations with business outside the country or state. For years, the state of Washington taxed Boeing customers like foreign military's, Kings heading Moslem governments, etc. etc. Those folks never demanded Washington state services like University educations, public schools, etc. Unfortunately, the Democrats in Washington state gave tax breaks to Saudia Arabia and other countries.
4) Tax Corporations they are anti-innovation. Companies like MicroSoft, Google, Facebook stifle competition and innovation by buying out competitors. Tax them high enough, so they cannot buyout their competitors and support small business.
I could add more to the list, but you get the point.
BTW...that EVIL SOCIALIST President Reagan in his tax reform bill made capital gains, dividends, and interest income taxable at the same rate!!!
Making the capital gains rate lower than the other two is just a tax break for the VERY RICH.
END IT.
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