A simple economic lesson... raise capital gains to 43% will do what?

[the other mike]

This should have been done 40 years ago.
It's now essentially too late to recover the $20 trillion shift in wealth which took place..

I'm not saying this from a socialist standpoint.... I'm saying that we should have the premier booming economy if we had played our cards right and not let China take our role.

We were sold out and it appears the people here ^^^ disagreeing with me are in on it.

 

[the other mike]

Reaganomics was and is a huge scam.
Prove me wrong.

 

[john doe 101]

I'm not saying this from a socialist standpoint.... I'm saying that we should have the premier booming economy if we had played our cards right and not let China take our role.

We were sold out and it appears the people here ^^^ disagreeing with me are in on it.

Well to have accomplished that you would of had to of restrained capitalism. Now we cant have that now can we?

 

[Rigby5]

Huh? Max contribution to a 401k $19,500 + $6,500 for a catchup. What in the hell are you talking about?

Depends on how much you are making.
But the point is you are not just saving the tax on the money you put into the 401k, but also since the contribution puts you into a lower bracket, you save on the amount the rest of the money you do declare as wages, is taxed.

 

[Rigby5]

Reaganomics was and is a huge scam.
Prove me wrong.

That was "Trickle Down", and even David Stockman admitted it was a fraud.

{...
The term "trickle-down" originated as a joke by humorist Will Rogers and today is often used to criticize economic policies that favor the wealthy or privileged while being framed as good for the average citizen. David Stockman, who as Ronald Reagan's budget director championed Reagan's tax cuts at first, later became critical of them and told journalist William Greider that "supply-side economics" is the trickle-down idea:[11][12]

It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory.
— David Stockman, The Atlantic

Political opponents of the Reagan administration soon seized on this language in an effort to brand the administration as caring only about the wealthy.[citation needed] Some studies suggest a link between trickle-down economics and reduced growth, and some newspapers concluded that trickle-down economics does not promote jobs or growth, and that "policy makers shouldn't worry that raising taxes on the rich [...] will harm their economies".[4][13][3]
...}

Trickle-down economics - Wikipedia

en.wikipedia.org

 

[pknopp]

YOU might. I don't vote for Republicans or Democrats.

I haven't in a long time but it's still our debt. Putting it off for the next generation isn't the right thing to do.

 

[bendog]

I haven't in a long time but it's still our debt. Putting it off for the next generation isn't the right thing to do.

I don't know about blaming parties so much over debt. Voters just don't give a shit until one or the other party makes it an issue.

If we keep using the Fed to buy our own debt with "liquidity" and increasing deficits with every successive president .... voters may come to care. It may be too late though.

 

[pknopp]

I don't know about blaming parties so much over debt. Voters just don't give a shit until one or the other party makes it an issue.

If we keep using the Fed to buy our own debt with "liquidity" and increasing deficits with every successive president .... voters may come to care. It may be too late though.

Start making people pay and maybe they will care.

 

[Flopper]

• President Joe Biden is expected to raise long-term capital-gains tax for the wealthiest Americans to 43.4%, including a surtax. That would be higher than the top federal tax rate on wage income. How the Biden capital gains tax proposal would hit the wealthy

How the Biden capital gains tax proposal would hit the wealthy

President Joe Biden is expected to double the top long-term capital gains rate to 43.4%. But investors shouldn't necessarily rush for the exits.

www.cnbc.com

"Unintended Consequences"...
1) Analyses show that every 10% gain in the capital gains tax rate leads to a 7% change in capital gains realizations. That suggests Biden’s rate increase — which represents a 66% effective increase in the rate, could lead to a 45% to 50% increase in capital gains sales, which could create a large downward force in the market.
So this would mean 401K fund managers would be selling easily 50% reduction in values.
So what are 401ks value today:
About one-third of U.S. adults (35%) said they personally owned stocks, bonds or mutual funds outside of retirement accounts in a Pew Research Center survey from September 2019.
With 39% of the $6 trillion total 401K assets invested in the market..or about $2.4 Trillion will be at risk of dropping at least 50% in value.

401(k) Plan Research: FAQs

Frequently Asked Questions About 401(k) Plan Research How la

www.ici.org

Now that is just the affect on stock market and then on 401ks and then on the 60 million Americans with 401ks.

401(k) Plan Research: FAQs

Frequently Asked Questions About 401(k) Plan Research How la

www.ici.org

Now what about jobs in America?
At one point under Trump

U.S. companies have repatriated $1 trillion since tax overhaul​

U.S. companies have repatriated $1 trillion since tax overhaul

That's still short of the $4 trillion in overseas profits that President Trump would return as a result of the 2017 tax law.

www.latimes.com

Corporations have brought back more than $1 trillion of overseas profits to the U.S. since Congress overhauled the international tax system and prodded companies to repatriate offshore funds, a report showed Thursday. (snip)
Investment banks and think tanks have estimated that American corporations held $1.5 trillion to $2.5 trillion in offshore cash at the time the law was enacted. Before the overhaul, companies were incentivized to keep profits overseas because they owed a 35% tax when bringing it back and could defer payment by keeping funds offshore.
The law set a one-time 15.5% tax rate on cash and 8% on non-cash or illiquid assets.
Compare and contrast the way that Presidents Trump and Obama chose to stimulate the American economy, each of them generating roughly a trillion dollars in “stimulus.”

One trillion dollars have flowed into the American economy as Trump’s tax law changes allowed companies to repatriate profits without tax penalty

President Trump’s tax reform has delivered more than a trillion dollars of stimulus to the American economy through corporations repatriating profits held overseas in order to avoid penalties that the tax law had imposed on bringing home the fu...

www.americanthinker.com

In summary folks... all the economic benefits of the "repatriation" and the capital gains tax cuts will result in nearly $10 trillion in economic losses to 60 million Americans at the minimum!

More misinformation
Joe Biden can not raise the capital gains tax, only congress can do that and the chance of that happening is just about zero. A number of democrats as well every republican would vote against it.

However, as to what would happen if long capital gains were taxed at the ordinary income rate which is what Biden proposed, people in high tax brackets would be reluctant to sell investments, many holding till their tax rate was lower or till death when it would pass untaxed. Still other would put their investments in tax shelters such as IRA's or 401Ks or real estate. Would it stop people from investing? No, it would just change how they invested. Equities and real estate have provided to be the best long term investments with or without tax incentives.

 

[bendog]

Start making people pay and maybe they will care.

But people seem to like the expanded child tax credit, so long as they don't have to pay for it. I admit that I'm not totally against it, so long as parents actually have to have some job, any job no matter how little it pays, and the spending is offset on taxes to those making over 400K

 

[bendog]

More misinformation
Joe Biden can not raise the capital gains tax, only congress can do that and the chance of that happening is just about zero. A number democrats as well every republican would vote against it.

However, as to what would happen if long capital gains were taxed at the ordinary income rate which is what Biden proposed, people would be reluctant to sell investments, many holding till their tax rate was lower or till death when it would pass untaxed. Still other would put their investments in tax shelters such as IRA's or 401Ks or real estate. Would it stop people from investing? No it would not stop people from investing. Equities and real estate have provided to be the best long term investments with or without tax incentives.

Maybe but, isn't the cap gains still set to raise under the House tax proposal?

 

[Flopper]

Maybe but, isn't the cap gains still set to raise under the House tax proposal?

House Democrats proposed a top federal rate of 25% on long-term capital gains which would only apply to income over about half million year.

 

[DBA]

I thought you would say that
Your broker knows better and plays you for a sucker

If Biden’s policies are so bad for your wallet, why is the market booming?

It is booming because we are coming out of a pandemic and lockdowns all the while giving people extra money to spend. If Trump was still in office, it would be out of sight at this point. I don't expect you to understand the market nor my financial advisor's motivations. You see, he wants to make more money. He makes more money if I make more money. He isn't playing me. He is making moves to avoid Biden's detrimental policies because, you know, he is a greedy rich Republican that wants to make more money.

 

[JohnDB]

only congress can do that and the chance of that happening is just about zero.

But that would defy what I have been seeing the congressmen actually doing....they are buying value, dividend paying stocks to prepare for the situation. Just saying

 

[DBA]

If a guy is making $400k a year from his business, he either is A. Self-employed in which he can write off everything under the moon or B. Has his company structured ie a LLC in such a way where HE controls how much he pays himself. Dont need all that money you made this year? DONT PAY IT TO YOURSELF. Now if you do need $400k to survive off of and have to take it just to pay the bills on your multi-million dollar home, your $100k sportscar, and your 2nd home at the lake you could take it as pass through income where up to 20% can be deducted if you set up your corp correctly.

Listen man I'm not going to sit here and go through every single tax loop hole rich people can use to get out of paying their fair share in taxes. But you see that is why people making $400k+ a year can have such a low effective tax rate. So you can keep blathering on and on about how bad the poor guy who makes $400k a year has it, but we all know what is really going on.

You are nothing more than an envious, misinformed fool who has no idea what he is talking about. Do you really think everyone making $400k per year is self-employed? Maybe you should talk to some doctors out there about that and no they don't all have multi-million dollar homes, Ferraris, and vacation homes. That kind of talk is from a person who doesn't make anywhere near that kind of money. It is akin to the kid working at Burger King thinking the guy making 100k should be driving a Lamborghini.

 

[Flopper]

House Democrats proposed a top federal rate of 25% on long-term capital gains which would only apply to income over about half million year.

Maximum capital Gains rates have gone all over the place form a high of 70% to 18%. Regardless of rates, people continue to invest. There is no clear correlation between maximum capital gains rate and economic growth.

 

[dblack]

Maximum capital Gains rates have gone all over the place form a high of 70% to 18%. Regardless of rates, people continue to invest. There is no clear correlation between maximum capital gains rate and economic growth.

That's because there's no clear connection between the nominal tax rate and what they actually pay. These kinds of laws are merely there to solicit lobbying.

 

[rightwinger]

It is booming because we are coming out of a pandemic and lockdowns all the while giving people extra money to spend. If Trump was still in office, it would be out of sight at this point. I don't expect you to understand the market nor my financial advisor's motivations. You see, he wants to make more money. He makes more money if I make more money. He isn't playing me. He is making moves to avoid Biden's detrimental policies because, you know, he is a greedy rich Republican that wants to make more money.

You still have not explained what Biden did to trash the financial markets

Didnt your Broker explain it to you?

 

[Richard-H]

When capital gains taxes are high, companies tend to reinvest their profit as opposed to distributing it to stock holders. This means that the company expands - it's real value goes up and with it the value of it's stock. As companies expand it created jobs and stimulates the economy.

Conservatives complain that capital gains taxes mean that profits are taxed twice - once when declared by the company, then again when distributed to the stock holders as capital gains.

But another way of looking at it is that the profit are only taxed half when declared by the company, and never taxed the second half if the company reinvests the money. They only get taxed the second half when distributed to stock holders.

 

[pknopp]

But people seem to like the expanded child tax credit, so long as they don't have to pay for it. I admit that I'm not totally against it, so long as parents actually have to have some job, any job no matter how little it pays, and the spending is offset on taxes to those making over 400K

They like those trillions pumped into the markets yearly but hate paying taxes on it.