How America Soaks the Affluent

24,236 Views | 262 Replies | Last: 2 yr ago by going4roses
calbear93
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DiabloWags said:

Anyone with basic financial aptitude nows full well that the stock that is vested by employees and CEO's (in this case Union Pacific) through stock option grants and restrictedr over ONE YEAR is taxed at the LONG TERM CAPITAL GAINS RATE which is currently 20%.

This is opposed to SHORT TERM CAPITAL GAINS (held less than one year) which are taxed at the rate of ordinary income.

A Medicare 3.8% surtax kicks in for any capital gain for an individual over $200,000.

https://smartasset.com/taxes/2021-capital-gains-tax-rates

This is nothing new.
Its basic common knowledge.



It's not even as favorable as you suggest. When I was an executive officer, most of my compensation was in PSUs, RSUs and options. None of us ever received ISOs that had too many restrictions and was a pain for companies to maintain. I don't know any public company that currently provides ISOs. As such, when an executive exercises options, the gain is taxed as ordinary income. The main tax benefit of options is that it is a deferred form of compensation in that it is not taxed at vesting but upon exercise. RSUs and PSUs are also taxed as ordinary income at vesting since they are delivered as stock upon vesting. The main benefit is that you can pay in shares so that the company withholds shares for taxes instead of you writing a check.

Based on what you wrote, assume the other poster's linked TikTok indicated otherwise. If so, so tired of these Tiktok / Twitter idiots who have never held a real job making up idiotic claims. People who only learn from TikTok and Tweets are a big reason for the dumbing down of America.
going4roses
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Lol
How (are) you gonna win when you ain’t right within…
going4roses
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calbear93 said:

DiabloWags said:

Anyone with basic financial aptitude nows full well that the stock that is vested by employees and CEO's (in this case Union Pacific) through stock option grants and restrictedr over ONE YEAR is taxed at the LONG TERM CAPITAL GAINS RATE which is currently 20%.

This is opposed to SHORT TERM CAPITAL GAINS (held less than one year) which are taxed at the rate of ordinary income.

A Medicare 3.8% surtax kicks in for any capital gain for an individual over $200,000.

https://smartasset.com/taxes/2021-capital-gains-tax-rates

This is nothing new.
Its basic common knowledge.



It's not even as favorable as you suggest. When I was an executive officer, most of my compensation was in PSUs, RSUs and options. None of us ever received ISOs that had too many restrictions and was a pain for companies to maintain. I don't know any public company that currently provides ISOs. As such, when an executive exercises options, the gain is taxed as ordinary income. The main tax benefit of options is that it is a deferred form of compensation in that it is not taxed at vesting but upon exercise. RSUs and PSUs are also taxed as ordinary income at vesting since they are delivered as stock upon vesting. The main benefit is that you can pay in shares so that the company withholds shares for taxes instead of you writing a check.

Based on what you wrote, assume the other poster's linked TikTok indicated otherwise. If so, so tired of these Tiktok / Twitter idiots who have never held a real job making up idiotic claims. People who only learn from TikTok and Tweets are a big reason for the dumbing down of America.








How (are) you gonna win when you ain’t right within…
calbear93
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going4roses said:

Lol


What's interesting is that for most folks these days on both sides, facts and truth are repulsive or unacceptable when it does not fit the narrative. AI or algorithm promoted video or tweet that is easy to digest and already aligned with biases, fueling the rage, raising the heart rate, and vilifying those who are different are much more satiating to an uncurious mind that just wants a villain so that the dull mind can feel better about itself. No good guys here. Just dumbing down of America.
DiabloWags
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calbear93 said:

going4roses said:

Lol


What's interesting is that for most folks these days on both sides, facts and truth are repulsive or unacceptable when it does not fit the narrative. AI or algorithm promoted video or tweet that is easy to digest and already aligned with biases, fueling the rage, raising the heart rate, and vilifying those who are different are much more satiating to an uncurious mind that just wants a villain so that the dull mind can feel better about itself. No good guys here. Just dumbing down of America.

True.
The bar is terribly low in America these days, even at Bearinsider.

There are people here that have law degrees that continue to show zero basic financial aptitude who cant understand basic capital gains tax law and how billionaires have become billionaires, not to mention MBA's that have repeatedly posted here that the "poor have done better" with inflation.

It's mind-boggling just how dumb this place is at times.
Even by people who have advanced degrees.

"Cults don't end well. They really don't."
cbbass1
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DiabloWags said:

cbbass1 said:



In other words, the Fed is trying to crash the economy. It's the "killing the village in order to save it" philosophy that we saw in the Vietnam debacle.

It appears to be succeeding.


1.) The FED is not responsible for increasing economic supply chains. Thats the job of the Administration and Congress.

2.) The economy has proven to be quite resilient and is not falling apart as you imply given the recent job growth numbers for January (+504,000) and February +311,000)... not too mention retail sales of +3.0% and consumer spending of +1.8% for January, and a 0.9% increase in wages over the prior month.


https://www.reuters.com/markets/us/us-consumer-spending-surges-january-inflation-accelerates-2023-02-24/

I didn't say that the Fed was responsible for easing supply shortages. But by jacking up interest rates, the Fed is making it very costly and nearly impossible for suppliers to invest in increasing production.

Most producers of goods & services today are either a monopoly, or a quasi-monopoly. They have pricing power, meaning that they can charge higher prices without losing sales to competitors. So of course, these producers want their gravy train to continue. Instead of relying on competition between producers to reward increases in production, the Biden/Powell Fed is instead raising interest rates, deliberately increasing unemployment, and in his words, "rebalancing demand" (i.e., reducing Workers' wages & salaries). That is, they're trying to reduce Inflation by reducing consumer demand for goods & services.

That's crazy.

In addition, by raising interest rates & making Workers poorer, the Fed is systematically reducing the demand for consumer products! There simply aren't enough people in the U.S. who can afford to buy cars, appliances, or any consumer products that might not be absolutely necessary. So companies no longer invest in increasing production; they invest in buying back their own shares -- it's a far better ROI for them.

Whenever there's a supply shortage, producers have two choices: they can either
  • raise prices & increase earnings, OR;
  • invest in increased supply, & increase market share.

IF there's competition, in a healthy economy, the prudent long-term strategy is usually to increase production & gain market share.

BUT, if there's no competition, the way to maximize earnings is to simply jack up prices, take truckloads of money to the bank, and hope that the situation continues. Sadly, with close to zero anti-trust enforcement since the Reagan years, this is where we'll be stuck. Until it collapses.

The Fed's interest rate policy is designed to not only reduce Aggregate Demand, but also to extend existing supply shortages, and lock in extreme profits for manufacturers.

This is not only unsustainable, but it's cruel, and self-defeating. It's a massive transfer of wealth from Worker/Customer/Voters to corporate balance sheets. It's also guaranteed to reduce the primary source of revenue from operations -- which is, ultimately the wages & salaries that Worker/Customers receive in exchange for their Labor.

Anyone expecting Worker/Customer/Voters to vote for more of this idiocy in 2024 is in for a rude surprise, regardless of the party promoting it.

DiabloWags
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cbbass1 said:

DiabloWags said:

cbbass1 said:



That is, they're trying to reduce Inflation by reducing consumer demand for goods & services.




Of course they are trying to reduce consumer demand.
This isnt ROCKET SCIENCE.

And because the Fed doesnt get any help from the idiots in Congress, this is literally the only "tool" in their toolbox to bring inflation down.

Duh.
"Cults don't end well. They really don't."
DiabloWags
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cbbass1 said:




Anyone expecting Worker/Customer/Voters to vote for more of this idiocy in 2024 is in for a rude surprise, regardless of the party promoting it.



Your Pro-Labor "buddy" Dajo9 will.
He LOVES BIDEN.
"Cults don't end well. They really don't."
going4roses
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"Jeff Bezos reportedly purchased a $75 million "support yacht" with a helipad to trail his $500 million superyacht.

Meanwhile, Amazon doesn't want workers to organize for better pay and safer working conditions.

This is what oligarchy looks like."

True or false ?
How (are) you gonna win when you ain’t right within…
DiabloWags
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False.
"Cults don't end well. They really don't."
OdontoBear66
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DiabloWags said:

False.

Are you on the pass or fail system....Sure hope dajo, class and the likes aren't your Profs
going4roses
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Which parts are false ? Or all of it is lies ?
How (are) you gonna win when you ain’t right within…
DiabloWags
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OdontoBear66 said:

DiabloWags said:

False.

Are you on the pass or fail system....Sure hope dajo, class and the likes aren't your Profs

I'm on the TikTok system.
"Cults don't end well. They really don't."
going4roses
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Where is the TikTok link ?
How (are) you gonna win when you ain’t right within…
going4roses
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Random question

Could he have purchased a 25 million trail vessel and a 125 million yacht?

I'm just asking
How (are) you gonna win when you ain’t right within…
Big C
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going4roses said:

Random question

Could he have purchased a 25 million trail vessel and a 125 million yacht?

I'm just asking

Seriously. 75 million dollars for a "support yacht"?!? My regular yacht isn't even worth that much!
dimitrig
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going4roses said:

Random question

Could he have purchased a 25 million trail vessel and a 125 million yacht?

I'm just asking

No, he could not have.

going4roses
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Wags I was trying lol
How (are) you gonna win when you ain’t right within…
 
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