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The tax treatment of capital income, such as from capital gains, is often viewed as tax-advantaged. However, viewed in the context of the entire tax system, there is a tax bias against income like capital gains. This is because taxes on saving and investment, like the capital gains tax, represent an additional layer of tax on capital income after the corporate income tax and the individual income tax.
...Capital gains face multiple layers of tax, and in addition, gains are not adjusted for inflation. This means that investors can be taxed on capital gains that accrue due to price-level increases rather than real gains.
Capital gains taxes affect more than just shareholders; there are repercussions across the entire economy. Capital gains taxes can be especially harmful for entrepreneurs, and because they reduce the return to saving, they encourage immediate consumption over saving....
The plan indicates taxing capital gains at the income bracket for those earning above $1M, did anyone read the article the OP posted.
Quote:
The wealthiest Americans currently pay a top federal tax rate of 20% on those returns, if the asset is held for more than a year. (They also pay a 3.8% Medicare surtax on investment earnings, bringing the top rate to a total 23.8%.)
Biden’s proposal aims to bring that capital gains tax rate more in line with that of their job income.
The White House plan creates a top rate of 43.4%, when factoring in a Medicare surtax on investment earnings. That’s a bit higher than the 39.6% top tax rate on ordinary income Biden proposed.
It would apply to taxpayers whose income exceeds $1 million (or $500,000 for couples filing separate tax returns).
Yeah, SO? Why does everyone think it's ok to tax the bejeezus out of rich people who work for it? 45 percent of the people PAY ZERO FEDERAL INCOME TAXES. How about we all have some skin in the game? I am sick of paying for your ****.
Yeah, SO? Why does everyone think it's ok to tax the bejeezus out of rich people who work for it? 45 percent of the people PAY ZERO FEDERAL INCOME TAXES. How about we all have some skin in the game? I am sick of paying for your ****.
Why should wealthy be able to have the benefit of having millions of dollars taxed at the capital gains rate.
The tax treatment of capital income, such as from capital gains, is often viewed as tax-advantaged. However, viewed in the context of the entire tax system, there is a tax bias against income like capital gains. This is because taxes on saving and investment, like the capital gains tax, represent an additional layer of tax on capital income after the corporate income tax and the individual income tax.
...Capital gains face multiple layers of tax, and in addition, gains are not adjusted for inflation. This means that investors can be taxed on capital gains that accrue due to price-level increases rather than real gains.
Capital gains taxes affect more than just shareholders; there are repercussions across the entire economy. Capital gains taxes can be especially harmful for entrepreneurs, and because they reduce the return to saving, they encourage immediate consumption over saving....
Me not getting a reduced tax rate on the capital gains I make from owning stock is completely unrelated to taxes already paid on the income of the underlying corporation.
The implication of your statement is that no one should pay taxes on gains from the sale of assets. That's weak thinking. Gains made on the sale of assets is income, and we tax income. That's how it works. Biden's proposal has no effect on corporations, as they do not get a reduced rate for capital gains, it's all just income.
Quote:
Originally Posted by Grlzrl
Yeah, SO? Why does everyone think it's ok to tax the bejeezus out of rich people who work for it? 45 percent of the people PAY ZERO FEDERAL INCOME TAXES. How about we all have some skin in the game? I am sick of paying for your ****.
OK, Let's have an inverse tax rate, then. People at the low end of the income scale should start paying 50% of their income in taxes, while the rich shouldn't pay any taxes, because, well, they are rich, and deserve to keep every dollar. See how stupid that sounds?
Biden's proposal isn't going to bankrupt the rich, and the rich don't work for capital gains. Capital gains are not related to how hard the owner of the shares works.
Rates, shmates, why is biden entitled to anyones money?
Better that john Q rich guy spend his money on what he wants, rather than congress and the admin blowing it on themselves.
Me not getting a reduced tax rate on the capital gains I make from owning stock is completely unrelated to taxes already paid on the income of the underlying corporation.
The implication of your statement is that no one should pay taxes on gains from the sale of assets. That's weak thinking. Gains made on the sale of assets is income, and we tax income. That's how it works. Biden's proposal has no effect on corporations, as they do not get a reduced rate for capital gains, it's all just income.
OK, Let's have an inverse tax rate, then. People at the low end of the income scale should start paying 50% of their income in taxes, while the rich shouldn't pay any taxes, because, well, they are rich, and deserve to keep every dollar. See how stupid that sounds?
Biden's proposal isn't going to bankrupt the rich, and the rich don't work for capital gains. Capital gains are not related to how hard the owner of the shares works.
The wealthiest Americans currently pay a top federal tax rate of 20% on those returns, if the asset is held for more than a year. (They also pay a 3.8% Medicare surtax on investment earnings, bringing the top rate to a total 23.8%.)
Biden’s proposal aims to bring that capital gains tax rate more in line with that of their job income.
The White House plan creates a top rate of 43.4%, when factoring in a Medicare surtax on investment earnings. That’s a bit higher than the 39.6% top tax rate on ordinary income Biden proposed.
It would apply to taxpayers whose income exceeds $1 million (or $500,000 for couples filing separate tax returns).
Quote:
Originally Posted by Grlzrl
Yeah, SO? Why does everyone think it's ok to tax the bejeezus out of rich people who work for it? 45 percent of the people PAY ZERO FEDERAL INCOME TAXES. How about we all have some skin in the game? I am sick of paying for your ****.
frankly, some top earners whose major source of income is compensation treated as capital gains should be paying income rates on it.
Example - Bezos makes I believe only a $100K salary/year. But when he cashes in AMZ stock he was "paid" at say $10/share at $3,000/share, then he should pay more than 20% on $2,990/share gain.
Bezos is an extreme example, but there are many people in the financial industry and C-level who earn a large amount of their "compensation" on items that are taxed at a max of 20%.
And these are compensation methods that are not available to everyone.
Now, what's that # of people, and what is the compensation involved? That I haven't seen specified.
frankly, some top earners whose major source of income is compensation treated as capital gains should be paying income rates on it.
Example - Bezos makes I believe only a $100K salary/year. But when he cashes in AMZ stock he was "paid" at say $10/share at $3,000/share, then he should pay more than 20% on $2,990/share gain.
Bezos is an extreme example, but there are many people in the financial industry and C-level who earn a large amount of their "compensation" on items that are taxed at a max of 20%.
And these are compensation methods that are not available to everyone.
Now, what's that # of people, and what is the compensation involved? That I haven't seen specified.
There are what....5 people that make that kind of money? To even bring up Bezos is ridiculous.
Gosh, I wonder what an "extreme example" would be?
And, "Now, what's that # of people, and what is the compensation involved? That I haven't seen specified."
Did both of these go over your head.
In the abstract - if a Wall Street Money Manager is compensated in a manner that greatly favors a 20% cap gains rate than a 36% income rate - is that "fair"?
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