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

[Mac1958]

upping the cap gains by the 3% or whatever they're discussing isn't going to make drastic changes in people's behaviors.

We DO have serious problems. Inflation in housing and food are NOT going away, and their core causes are largely caused by the dems ... or gopers, really. We are short something like one to three million housing units, AND interest rates are cheap. Global warming is decreasing crops, esp in the West, and CA accounts for probably more that 50% of our produce. The dems chance pouring gas on a fire with more public cash benefits.

But both dems and gopers know workers need to make more. And most dems or near half anyway know more deficit spending is not a good idea, because we already have soc sec and medicare forced deficits.

The top capital gains rate right now is 20%, and they're looking at nearly doubling that to regular individual margins. That's huge. A small business owner could be hit so hard when selling their business that they may not be able to even do it. I've got clients who are really sweating this out.

The GOP can't budge on minimum wage. The Dems are asking for trouble on taxes. It sure would be nice if they could work together and come up some new ideas they both could live with, but we know that's no longer allowed.

 

[Mac1958]

well if you were an actual advisor, then you'd know that if people don't earn an annual million, then the capital gains rate doesn't affect them. Which therefore means that tax is a useless increase based on possible candidates for it.

"then you'd know that if people don't earn an annual million, then the capital gains rate doesn't affect them."

What in the world are you talking about?

Good gawd. Trumpsters.

 

[DBA]

The top capital gains rate right now is 20%, and they're looking at nearly doubling that to regular individual margins. That's huge. A small business owner could be hit so hard when selling their business that they may not be able to even do it. I've got clients who are really sweating this out.

The GOP can't budge on minimum wage. The Dems are asking for trouble on taxes. It sure would be nice if they could work together and come up some new ideas they both could live with, but we know that's no longer allowed.

Make sure to tell your clients that you voted for it and either couldn't see the writing on the wall, didn't care, or actually thought that not raising the minimum wage would cause the same level of economic stress as huge tax increases on individuals and businesses. See how they respond. I would fire my financial advisor for sheer stupidity and/or lack of insight if he admitted to such.

 

[Mac1958]

Make sure to tell your clients that you voted for it and either couldn't see the writing on the wall, didn't care, or actually thought that not raising the minimum wage would cause the same level of economic stress as huge tax increases on individuals and businesses. See how they respond. I would fire my financial advisor for sheer stupidity and/or lack of insight if he admitted to such.

I know you would. You're an arrogant, ignorant Trumpster.

 

[bendog]

The top capital gains rate right now is 20%, and they're looking at nearly doubling that to regular individual margins. That's huge. A small business owner could be hit so hard when selling their business that they may not be able to even do it. I've got clients who are really sweating this out.

The GOP can't budge on minimum wage. The Dems are asking for trouble on taxes. It sure would be nice if they could work together and come up some new ideas they both could live with, but we know that's no longer allowed.

I thought the dems were going to exempt small biz and farms. I know someone who owns an insane about of rural land that is only marginally productive in earnings, but it's got a low property tax because of that ..... and the owner could cash out but now he won't.

But the problem with cap gains, macroeconomically, back in the 70s was people not selling long term investments. People held onto marginal investments rather than looking for more growth. Both centrist dems and gopers knew it was bad. My fear is that people like AOC and Red Bernie are ... nuts.

 

[Mac1958]

I thought the dems were going to exempt small biz and farms. I know someone who owns an insane about of rural land that is only marginally productive in earnings, but it's got a low property tax because of that ..... and the owner could cash out but now he won't.

But the problem with cap gains, macroeconomically, back in the 70s was people not selling long term investments. People held onto marginal investments rather than looking for more growth. Both centrist dems and gopers knew it was bad. My fear is that people like AOC and Red Bernie are ... nuts.

Reasonable fear

That's my fear with any ideological fundamentalist, for that matter.

 

[Independent thinker]

• 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!

You completely lose the dweebs who could care less about stocks and most don't even know what capital gains are, other than something only those big bad rich know about. Rich Bad, Tax More.

 

[JohnDB]

Capital gains taxes do hit the wealthiest people...but also are a target on the retired people...

Since Social Security is going broke...let's just crush them old people some more.

 

[imawhosure]

All income should be taxed at the exact same rate, whatever percentage that is decided to be. Manual labor or Capital Gains should be the same.

Wrong! When you work, you GET THE MONEY. When you invest, it is a crap shoot.

 

[imawhosure]

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

And you can't address a 30 tril national debt, by continuing to spend more money every year than comes in, and creating new programs that cost money.

 

[pknopp]

Wrong! When you work, you GET THE MONEY. When you invest, it is a crap shoot.

So is the person opening up his own business. It's also not really a crap shoot when the Fed has been pumping Trillions yearly. If you haven't made lots of money the last 13 years you should not be investing anyway.

 

[pknopp]

And you can't address a 30 tril national debt, by continuing to spend more money every year than comes in, and creating new programs that cost money.

What do you want me to do about that? We have done that for what now? Nearly 30 years?

"Conservatives" elected both Bush and Trump and both blew up the deficit. It has to be paid for.

 

[imawhosure]

I did. Labor and Capital Gains taxed at the same rate. Income taxed as income. Period.

Tell that to all the company's that need a cash infusion that could go under if we don't buy into their turn around plan. Labor is paid, period! Investment is a crapshoot.

 

[imawhosure]

You're trying to discuss economics with people who have received their education and training from Limbaugh, Hannity and Carlson.

I do admire your patience, but I'm sure you're not hoping to break through.

And you sir, are not debating on economics, you are debating from your view on social policy.

 

[colfax_m]

Capital gains taxes do hit the wealthiest people...but also are a target on the retired people...

Since Social Security is going broke...let's just crush them old people some more.

401ks and IRAs don’t see capital gains. The retirees that are hit by capital gains are doing fine. They’re the ones they maxed out other retirement accounts first.

I’d make retirement accounts better and simpler and make capital gains taxed like regular income.

 

[marvin martian]

Did you forget that we’re debating the ultra rich not poor workers?

Poor workers have little income, but you still want them to pay income taxes. Sad and dumb. Surely you know they pay other taxes which greatly harm them. I know I know you don’t care about the working poor. Fuck those losers. Right?

Taxes are harmful?

 

[imawhosure]

The top capital gains rate right now is 20%, and they're looking at nearly doubling that to regular individual margins. That's huge. A small business owner could be hit so hard when selling their business that they may not be able to even do it. I've got clients who are really sweating this out.

The GOP can't budge on minimum wage. The Dems are asking for trouble on taxes. It sure would be nice if they could work together and come up some new ideas they both could live with, but we know that's no longer allowed.

So I see even you admit this is awful. Since they are your peeps, try xplaining it to them. How can one segment of the population hate another so much, over green paper. It is beyond me.

 

[Mac1958]

And you sir, are not debating on economics, you are debating from your view on social policy.

I'm debating based on 21+ years of analyzing and acting on analysis of economics and markets on behalf of my clients.

Are you?

 

[22lcidw]

The top capital gains rate right now is 20%, and they're looking at nearly doubling that to regular individual margins. That's huge. A small business owner could be hit so hard when selling their business that they may not be able to even do it. I've got clients who are really sweating this out.

The GOP can't budge on minimum wage. The Dems are asking for trouble on taxes. It sure would be nice if they could work together and come up some new ideas they both could live with, but we know that's no longer allowed.

The Progs rule the roost. Even with Repubs in power the direction has been left for decades. Biden has called for Unity since before is anointing as potentate. We are still looking for it. Progs get something from everything done. The only thing they need is the Supreme Court. And we give them wins with our own Justices at times anyway.

 

[Mac1958]

So I see even you admit this is awful. Since they are your peeps, try xplaining it to them. How can one segment of the population hate another so much, over green paper. It is beyond me.

I'm not a Democrat. Too many issue differences. Sorry.