Biden wants retroactive tax increase on capital gains
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Well, a hedge fund manager with say a 1 billion + compensation pays 23.8% tax rate on that compensation. Why is that? I'll wait
If the desire is to have an intelligent conversation about this topic then you're going to have to provide way more information than that. Just one example, many reports on compensation include rsu grants as a part of that years compensation, however one is not taxed at the time the rsu's are granted, rather when they vest, which is often over the course of several years. So if a person makes $1mil base salary and was granted $10mil in rsu's, many folks would state that the person earned $11mil for the year. However, the tax reality is that they really only made $1mil (assuming the rsu are incentive's so the first vesting date is at least a year in the future). So if one is reading media reports that exec so and so made $11mil this year but yet only paid $300K in taxes and everyone panties in a bunch, the reality is that the $300K is based on the $1mil that they recognized the current year. Next year they'll have to pay taxes on the part of the grant that vests ($2.5 mil if it's a 4 year vesting period).
That's just one factor, there are many more that don't end up being "rich person isn't paying their fair share".
If the desire is to have an intelligent conversation about this topic then you're going to have to provide way more information than that. Just one example, many reports on compensation include rsu grants as a part of that years compensation, however one is not taxed at the time the rsu's are granted, rather when they vest, which is often over the course of several years. So if a person makes $1mil base salary and was granted $10mil in rsu's, many folks would state that the person earned $11mil for the year. However, the tax reality is that they really only made $1mil (assuming the rsu are incentive's so the first vesting date is at least a year in the future). So if one is reading media reports that exec so and so made $11mil this year but yet only paid $300K in taxes and everyone panties in a bunch, the reality is that the $300K is based on the $1mil that they recognized the current year. Next year they'll have to pay taxes on the part of the grant that vests ($2.5 mil if it's a 4 year vesting period).
That's just one factor, there are many more that don't end up being "rich person isn't paying their fair share".
They didn't say it, but using hedge fund manager as an example means they are asking about the carried interest treatment hedge fund managers get, where all of their compensation is treated as a capital gain. I personally that's bad policy, but...
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