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capital gains tax is lame
- Thread starter nayriee
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It's not 20% after one year in Australia OP. You get a 50% discount on your gains (if you've held that asset for greater than year ) which is added to your total taxable income for the year in which the gains were realised. You then get taxed as per the usual marginal income tax rate schedule. So if you had no other income except the capital gains and that gain was of $30k, you have to pay tax on an income of $15k, which would be nothing as it's within the tax free threshold.
Labor is looking to change this however, which I'm not a fan of. For housing sure (to curb speculative investment from raising house prices) but eliminating this for equity is going to hurt a lot of households and discourage participation in the stock market. Still never voting for Liberal though.
Labor is looking to change this however, which I'm not a fan of. For housing sure (to curb speculative investment from raising house prices) but eliminating this for equity is going to hurt a lot of households and discourage participation in the stock market. Still never voting for Liberal though.
He's being laughed at because he doesn't want to pay taxes. Not because he's "smart" lol. "No taxation" people are anything but.
My answer to this is :
Slapping a 40% tax rate on any and all CG is ridiculous. Certain governments actively discourage making money from passive income this way by hiking up tax rates on CG.
Separate levels of tax depending on the amount earned in a year is fine.
Basically if you're paying less on capital gains than you are on normal income, you shouldn't whine so much. And anyone who calls it "double taxation" is just economically illiterate.
That I agree with. Progressive taxation principles should apply to capital gains as well.
I mean long-term, if people trust that their tax money is not being wasted, can see the benefits whether socially (their parents getting enough pension, decent healthcare, decent schools and childcare, etc) or in terms of infrastructure (fixed roads, public transport etc.) they are also more willing to pay taxes. In Scandinavia you pay (small) taxes even if you're poor, this makes people more invested in the system and feel like they're part of it.
OP
OP
She does wanna pay taxes, and I do... Through my regular job already.
How... How do you not get this?
Do you think if I work two jobs, I can choose one to be tax free?
You obviously don't want to pay taxes.
That's rather interesting tbh, I wonder how it affects those CEOs who get paid in stock. Well in comparison to American CEOs who make a killing off capital gains lol
Lmao, people just assume the market only makes you rich
OP
OP
Oh? So its two jobs now? Earlier people were saying its passive income and "you do nothing"
OP
OP
Not mutually exclusive, and even if it were, not what I said, so looking for a "gotcha" moment here is ridiculous.
Paying taxes there just makes sense. I don't see why working a job would mean you wouldn't pay capital gains tax.
Who cares? The point is that it's a second source of income. There's no reason for one type to be taxed and the other not other than you don't want it to be.
You do get taxed for 401k and pensions. When it starts paying out, you pay an income tax.
Not in all cases. Certainly in the UK if you do not have a company pension, you have to make contributions via taxed salary to external pensions.
So it's situational.
This is already covered by franking dividends in Australia which are only taxed at the rate difference between the company tax and individual income marginal tax. I think this is fair, as company profits essentially exist to compensate shareholders. This is especially true for a small business operating under a private company structure.
"Double taxation" my ass
Capital gains and dividends should be taxed at least as much as earned (labor) income.
The idea that the rich will just sit on their money, choosing to earn 0% returns out of spite, is ridiculous.
The idea that the rich will just sit on their money, choosing to earn 0% returns out of spite, is ridiculous.
In the uk pension contributions to a SIPP get the tax refunded, so it isn't really taxed salary.
Yeah, I was posting in regards to the U.S., should've clarified. I forgot this was an international discussion.
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No. Not having capital gains tax is regressive. Any money you make should be taxed. Rich people make money with capital gains more than income relative to the poor.
Capital Gains in the US aren't that bad at all for the average trader
Long term capital gains are really fucked up. It should be the same amount as income tax. Basically if you inherit a mass fortune you get a special low tax because fuck people that actually work.
There are economists who recommended having no/low corporate income tax but instead high dividends/cap gains taxes.
That is, don't bother to tax Apple's profits directly, instead tax the money going to the individuals who own Apple.
We certainly need higher capital gains tax for those earning immoral amounts of money. Most of their wealth is held in assets. It should be drastically reduced for People below a particular income bracelet though.
You should definitely tax both.
Money will get shuffled around to avoid taxes.
Most working Americans qualify for up to ~$22K of tax free investing every year through Roth IRAs and Roth 401ks. If you're investing more than that, you're probably not someone who needs a tax break.
Corporations with crafty accountants are already getting extremely low tax rates. Easier to directly withhold 38% of dividends and sold stock (capital) gains.
For regular people there is things like investment isas here that are tax free and the amount you can have rolls over every tax year.
In practice it's just used by the middle class but I mean it is there.
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