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

[jc456]

Well I did not mean below poverty level, because then they would not likely have an IRA.
But everyone with a job should be trying to put money away in an IRA.
I found that if I put money into the IRA, it reduced my paycheck withholding by about the same amount as I was putting away.
That means I was essentially wealthier by the amount I put into my IRA.
The IRA did not cost me anything, and essentially was free money that came from tax exemptions.

But if the IRA suddenly got a huge rate increase, then not only would it be stealing my 401k from me, but it would end anyone ever putting money into a 401k ever again.

don't you know it's a

You are speaking of people with money. Do I believe people should think about the future? Sure but that's not really the topic.

The topic boils down to the idea that we are $30 trillion in debt and I'm asking why those who make their money on labor should be the only ones largely responsible for that. Why shouldn't all?

agree, so let all the lazy fks pay money in. let's go. shit, that's 47% of the popluation.

 

[jc456]

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.

well the stock holders pay tax on the money they get, and that money is after taxes, so indeed, that money is taxed twice. All one has to do is open up the area between the ears.

 

[pknopp]

don't you know it's a

agree, so let all the lazy fks pay money in. let's go. shit, that's 47% of the popluation.

I'm not against the idea of everyone paying something but I'm also not against exempting the first 10-15,000 in Capital Gains.

 

[DBA]

Companies pay people more.

So simple, right? I mean, these companies would never dream of passing along the extra payroll to their consumers via price increases, just like they would never dream of passing along higher corporate taxes. In the long run, the same folks that get a pay raise pay more for all the products in which they purchase, thus decreasing their net gain. In the end, it helps virtually no one but it hurts those that pay more for products but didn't get a pay raise. Yeah, those "rich" folks. Let's get 'em. Democrats sure are smart. They really have a handle on how to keep inflation under control too. Just print more money, hand out more money(increasing demand), increase wages, and disincentivize people from working creating a labor shortage(decreasing demand). Brilliant I tell ya.

 

[DBA]

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

Didnt your Broker explain it to you?

The market is not reaching its full potential due to fears of inflation and labor shortages caused by increased dependency and incentivizing people NOT to work, the threat of raising the capital gains tax rate, the threat of increasing the top tax bracket, and the threat of rolling back the Trump tax cuts which virtually everyone got(yeah, I know they didn't tell you). GDP growth has slowed and will continue to do so. Biden is an imbecile on all fronts. Sorry, you haven't figured that out yet.

 

[rightwinger]

The market is not reaching its full potential due to fears of inflation and labor shortages caused by increased dependency and incentivizing people NOT to work, the threat of raising the capital gains tax rate, the threat of increasing the top tax bracket, and the threat of rolling back the Trump tax cuts which virtually everyone got(yeah, I know they didn't tell you). GDP growth has slowed and will continue to do so. Biden is an imbecile on all fronts. Sorry, you haven't figured that out yet.

What total Bullshit

The market is at record levels and you whine….It is not high enough
Biden market is higher than Trumps
Biden has added more jobs than Trump did in four years

Didnt your financial advisor explain that to you?

 

[pknopp]

The market is not reaching its full potential due to fears of inflation and labor shortages caused by increased dependency and incentivizing people NOT to work, the threat of raising the capital gains tax rate, the threat of increasing the top tax bracket, and the threat of rolling back the Trump tax cuts which virtually everyone got(yeah, I know they didn't tell you). GDP growth has slowed and will continue to do so. Biden is an imbecile on all fronts. Sorry, you haven't figured that out yet.

Tell you what......lets dispense with the tax increases and the Fed pumping.

 

[gipper]

Most companies do it for them automatically, since it saves more in taxes than it costs.
Everyone can afford an IRA, because it often reduces your taxes by more than you put in.
It is free money that almost everyone should take advantage of.
(But I have to admit I have not actually done the numbers for a very low income.)

Oh brother. Do you really think the working poor work for companies offering 401k plans? Some might but I suspect few do.

I don’t think you’re aware of what life is like as a poor person.

 

[jc456]

I'm not against the idea of everyone paying something but I'm also not against exempting the first 10-15,000 in Capital Gains.

I’m against capital gains

 

[healthmyths]

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.

And Trump by law didn't LOWER capital gains tax but his recommendation and the repatriation tax helped!

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

Biden vs. Trump: Capital Gains Taxes​

capital gains would now be taxed at 39.6% under Biden’s plan,
instead of at 20% under Trump’s tax act.

Joe Biden vs. Donald Trump: Tax and Economic Policies -- SmartAsset | SmartAsset

There are many key policy differences between Biden and Trump. SmartAsset analyzed both president's positions on taxes and economics.

smartasset.com

 

[healthmyths]

Oh brother. Do you really think the working poor work for companies offering 401k plans? Some might but I suspect few do.

I don’t think you’re aware of what life is like as a poor person.

Oh brother... So define "working poor"???? Who are they?
Now for FACTS...
A) 11.8 percent of the nation's population, lived below the official poverty level in 2018,
B) A family of four below 200 percent of poverty in 2012 had a family income less than $46,000 a year.
An Overview of America’s Working Poor | PolicyLink

 

[gipper]

Oh brother... So define "working poor"???? Who are they?
Now for FACTS...
A) 11.8 percent of the nation's population, lived below the official poverty level in 2018,
B) A family of four below 200 percent of poverty in 2012 had a family income less than $46,000 a year.
An Overview of America’s Working Poor | PolicyLink

Meaning?

 

[Markle]

Wrong.
The people getting these mortgages were paying them fine for years.
What happened is that they were adjustable rate mortgage, (ARM), based on the British LIBOR instead of the US prime lending rate.
So then when the economy crashed and US interest rates went down, the LIBOR went up, and the monthly mortgage payments suddenly nearly doubled.

That makes no sense, whatsoever. If interest rates went down, the rate of ARMs would go down making the mortgage more affordable.

The mortgage/financial/housing meltdown could be said to have started about 1997.

I have read and studied hundreds of articles over the years and never saw one mention of the LIBOR. The vast majority of the mistakes were made by Democrats.

 

[healthmyths]

What total Bullshit

The market is at record levels and you whine….It is not high enough
Biden market is higher than Trumps
Biden has added more jobs than Trump did in four years

Didnt your financial advisor explain that to you?

ONE WORD! PROOF?????? Also why don't you pay attention to the little red dotted line? To me that along with your
laziness in providing proof makes me totally ignore your comments as they are ignorant and lazy!

 

[Concerned American]

• 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!

Lessons are never learned. CA has taxed to the point that many in their tax base have left the state. The US has made the business climate unfriendly for some time and many of the largest employers/mfrs have left for other countries. It will be interesting to see how many high-earning, tax-paying Americans will leave for more tax friendly nations. I believe there are many countries out there that will welcome them with open arms.

 

[GMCGeneral]

You can't "cut taxes" and address a $30 trillion dollar deficit.

Sure you can. Say bub bye to Medicaid, Medicare, welfare, subsidies, tons of ways to cut spending. Pass the fucking Balanced Budget Amendment and put the dollar back onto the Gold Standard.

 

[healthmyths]

Meaning?

Simple a family of 4 probably has the mom and dad working. But what about the two kids?
I was raised in the 1950s. My family would have been considered living in poverty today.
But you know, I mowed lawns. Shoveled snow. Worked with my Dad in the 5 gardens we co-oped with neighbors that provided all the vegetables we needed and fresh! We had chickens for meat. We hunted rabbits.
We gleaned corn (a term you have no knowledge about) and Dad sold bushels to the elevator.
Our family of 6 would have been considered 'Poverty level" but we didn't! What did you do as a kid?

 

[gipper]

Simple a family of 4 probably has the mom and dad working. But what about the two kids?
I was raised in the 1950s. My family would have been considered living in poverty today.
But you know, I mowed lawns. Shoveled snow. Worked with my Dad in the 5 gardens we co-oped with neighbors that provided all the vegetables we needed and fresh! We had chickens for meat. We hunted rabbits.
We gleaned corn (a term you have no knowledge about) and Dad sold bushels to the elevator.
Our family of 6 would have been considered 'Poverty level" but we didn't! What did you do as a kid?

Cool but that has nothing to do with what we’re debating in this thread.

 

[struth]

I have NO plan. But you know that. It's pretty typical though. Rather than discuss what is being proposed you want to make your replies personal. It's pretty cheap.

what? you proposed treating everything as ordinary income and taxing it all the same! i was discussing that and asking you about it

 

[rightwinger]

Lessons are never learned. CA has taxed to the point that many in their tax base have left the state. The US has made the business climate unfriendly for some time and many of the largest employers/mfrs have left for other countries. It will be interesting to see how many high-earning, tax-paying Americans will leave for more tax friendly nations. I believe there are many countries out there that will welcome them with open arms.

The US has the lowest business and capital gains rates in decades