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Biden to 'propose a capital gains tax as high as 43.4% for the wealthy' (currently 20%)
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Bring it. I'd also like to see some work done to reduce the bullshit massive companies do to skirt around income taxes.
Yep, this plan is for people making a $1 million a year or more.
Oh boy can't wait to hear off those small business owners (people with OK money generally speaking) complain about their taxes going up.
Oh but they will gladly tell you how much they aren't paying in taxes on a daily basis!
Fuck them. I know it's not targeting them but some assholes out there definitely need a tax hike, don't care how wealthy you are. It's needed.
Oh but they will gladly tell you how much they aren't paying in taxes on a daily basis!
Fuck them. I know it's not targeting them but some assholes out there definitely need a tax hike, don't care how wealthy you are. It's needed.
Depends what you consider rich since some people seem to think 500k is not rich
Income tax on the wealthy was absurdly high, capital gains not so much.
Sounds like this would effectively be a new bracket just for capital gains. I've thought for a while that we need more brackets going higher up. I assume this counts for carried interest as well (I don't know how that loophole actually works).
Need some more details here. From the bit in the article it sounds like this would effectively make the long term capital gains rate for high earners equivalent to the short term capital gains rate. That alone would be a pretty bad change if it's not also accompanied by a corresponding increase to the short term rate. Otherwise, it would completely disincentivized long term positions in stocks.
Also 20% to 39.6% is a pretty massive jump, and it will be interesting to see how they choose to handle it without triggering a massive sell off in the stock market (which would negatively impact anyone who holds stocks in retirement accounts for example, not just rich people).
Also 20% to 39.6% is a pretty massive jump, and it will be interesting to see how they choose to handle it without triggering a massive sell off in the stock market (which would negatively impact anyone who holds stocks in retirement accounts for example, not just rich people).
Oh no! Not the stocks! How will they ever survive with the already record highs!
LMAO!
OP
OP
Bit more
www.bloomberg.com
Biden Eyeing Tax Rate as High as 43.4% in Next Economic Package
President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6% to help pay for a raft of social spending that addresses long-standing inequality, according to people familiar with the proposal.
www.bloomberg.com
Wealthy people aren't going to start selling off their stocks because of this. What else would they do with the money, put a billion in their savings account that's only FDIC insured to $250,000 and returns 0.1%?
There's a series of tiktok videos on how small business owners gives you tips on all the tax loopholes they use that's very eye opening, some tips border on fraud or just straight up fraud.
It won't pass the Senate. They would also need to get rid of the SALT cap in the states where this matters most as well which would offset the gains.
You either get an increase on corp taxes or wealthy and not both.
Corp taxes has the highest likelihood. If you align ST and LT rates you have effectively removed all incentive to hold a stock for any period of time. The market volatility would be massive.
The biggest incentive to hold a stock for any period of time is the LT rate. By holding a year you effectively pay half the tax. This provides some stability. If a one day hold = one year+ hold there is no reason to hold a stock longer than a day.
This is likely a revenue neutral event and putting a massive disincentive to realize a gain (equalizing ST and LT rates) means less realizations.
It's a poorly thought out proposal that likely assumes historical gain realizations would be the same when in reality they won't be.
if the long term cap gains tax doubles, wealthy people will definitely pull out their long term investments before that happens
