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It was announced today that President Trump plans to issue an executive order to index capital gains to inflation. Anyone who has ever bought stock and sold it knows that taxable profit is measured by subtracting cost from the sale price. Well the President is suggesting that we should now take inflation into account when calculating cost.
This executive order will benefit only those who buy and sell stocks. No one is suggesting changes in the 401K or IRA account laws. The very rich will benefit from the change and the middle class will pay tax on every dollar that they draw from their retirement accounts.
Oh yeah, this will also increase the deficit and all of that talk about job creation from the profit is nonsense.
This thread was meant for Trump supporters. I'm assuming that the idea of taxation and profit is not confusing to the average Trump supporter. Some responses were in order to what I see as the latest irresponsible act. I mean that the middle class does not participate in anything other than trading 100 shares at a time.
So far I've seen two tax cuts for the rich and some lip service that the H-1bs are taking American jobs but not much else.
I would like to hear from Trump supporters as to what he has actually done to make your lives better.
The man does like executive orders. Oddly, when Obama was president, he seemed to dislike them.
I do wonder if this move is within his power. An argument could be made that any change in the tax rate or such adjustment must arise from the House. Of course, on the other hand, the enabling legislation (which I have not seen) may be written in a way that such an EO could be done. I imagine the Democrats will object, the Republicans will sit on their hands. More than likely the Courts will become involved.
I do wonder if this move is within his power. An argument could be made that any change in the tax rate or such adjustment must arise from the House. Of course, on the other hand, the enabling legislation (which I have not seen) may be written in a way that such an EO could be done. I imagine the Democrats will object, the Republicans will sit on their hands. More than likely the Courts will become involved.
Before I started the thread I saw what you said in more than one article. It may have to originate in the House. They better move fast. North East Public Radio says that in NY 19 the Democrat is five to seven points ahead of the incumbent Republican.
The man does like executive orders. Oddly, when Obama was president, he seemed to dislike them.
I do wonder if this move is within his power. An argument could be made that any change in the tax rate or such adjustment must arise from the House. Of course, on the other hand, the enabling legislation (which I have not seen) may be written in a way that such an EO could be done. I imagine the Democrats will object, the Republicans will sit on their hands. More than likely the Courts will become involved.
Nice straw man. I don’t think I’ve seen anyone in this thread criticizing Trump’s use of executive orders, but rather the actual policies themselves.
Nice straw man. I don’t think I’ve seen anyone in this thread criticizing Trump’s use of executive orders, but rather the actual policies themselves.
Obama actually issued an executive order in 2016 where he raised the eligibility for overtime pay to an unconditional $47,000 a year. Just before our current President took office a Texas judge nullified the executive order saying that he didn't want to make Trump do it.
It was announced today that President Trump plans to issue an executive order to index capital gains to inflation. Anyone who has ever bought stock and sold it knows that taxable profit is measured by subtracting cost from the sale price. Well the President is suggesting that we should now take inflation into account when calculating cost.
This executive order will benefit only those who buy and sell stocks. No one is suggesting changes in the 401K or IRA account laws. The very rich will benefit from the change and the middle class will pay tax on every dollar that they draw from their retirement accounts.
Oh yeah, this will also increase the deficit and all of that talk about job creation from the profit is nonsense.
over 85% of the benefit will go to the 1% on the backs of the 99%- yes the benefactor of the working stiff my a$$....
If you look at the thread, it was proposed during the HW Bush admin, but they decided it could be done by executive order. I speculate that after 8 years of 'imperial presidency' under Pres. Obama, the scope of executive orders may be much greater now.
It used to be an article of faith among economists that the capital gains tax rate should be zero. What is missing in the benefits analysis is the effects of economic growth for everyone. As JFK said, 'a rising tide lifts all boats.'
Wouldn't that be nice if that was true. Let's take a look at who trades stocks in real quantity. It is the very rich. They buy and sell thousands of shares every day. In this situation, the benefit will go mainly to them. The cost basis of a stock purchase will be adjusted for inflation both for their profits and losses.
Any break to the upper middle class will be minimal. They are more concerned with making mortgage payments on their half million dollar houses than the profit or loss from the trade of a few hundred shares every year.
This tax break may lift several thousand yachts, but it will never lift the millions of kayaks, canoes, and fishing boats out there. As I said above IRAs and 401Ks are not included.
Wouldn't that be nice if that was true. Let's take a look at who trades stocks in real quantity. It is the very rich. They buy and sell thousands of shares every day. In this situation, the benefit will go mainly to them. The cost basis of a stock purchase will be adjusted for inflation both for their profits and losses.
Any break to the upper middle class will be minimal. They are more concerned with making mortgage payments on their half million dollar houses than the profit or loss from the trade of a few hundred shares every year.
This tax break may lift several thousand yachts, but it will never lift the millions of kayaks, canoes, and fishing boats out there. As I said above IRAs and 401Ks are not included.
Kudlow, along with many other economists, believes that this will improve economic growth, which indeed helps everyone. I have a union pension that depends on the stock market. Trust me I don't have a yacht.
Anyway, this is also a matter of fairness. Why should people be taxed on inflation? That is in essence the way the tax works now.
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