LudwigsFountain said:
dajo9 said:
bear2034 said:
Anyone here qualified for Kamala's new proposal for taxes on unrealized capital gains?
Unlikely anyone here qualifies for either rate. You have to have income above $1M to have the 44.6% capital gains rate. Assets above $100M for the unrealized gains tax.
If the capital gain isn't adjusted for inflation, and I assume it wouldn't be, you'd end up with some very high effective rates. For example, if you bought the S&P the day Biden took office and sold it today, you end up with a effective tax rate of 98.4%, by comparing the inflation-adjusted gain to the tax, which is on the nominal gain.
I assume we'll get inflation under control, but even at low inflation I'd worry that the effective rate would distort investment decisions.
The creative ways you guys come up with to fear for the plight of the super rich is very amusing to me. I mean, I'm rich. But I have no fear of paying these taxes because these taxes are for the really, really rich. Maybe calbear93 and diablowags are sweating it out - I don't know.
But let's play your game. If you want to call inflation part of the tax rate, the number I come up with is 75%. But of course, that is bad finance with either of our numbers because it ignores opportunity costs. One of the benefits of the stock market is that it is more likely to protect you from inflation than say, bonds or cash (results may vary). The investment decision vs. bonds or cash is still there because of the opportunity costs which is negative returns.
In your scenario, the million dollar income earner has S&P 500 after tax inflation adjusted returns of 14% under the Biden / Harris plan (and that's only if the tax is not inflation adjusted which - who knows). As opposed to a 26% return under current law. I hope the super rich will survive.
If you want to complain about inflation and taxes you are misdirecting your anger, which should be pointed at Donold Trump. His 2017 tax plan included a stealth tax increase at all income levels that the corporate media ignores. The tax law sunsets at 10 years except primarily for two provisions. Anything lasting over 10 years had to be revenue neutral. One provision, Trump's corporate tax decrease is permanent law. How did he offset the cost of that and keep it revenue neutral? A 2nd provision changed the inflation adjustment of the income tax brackets, slowing them down at all levels of income. That is effectively a tax increase on all of us. So you are out here worrying about the super wealthy and ignoring the guy with his hand in your pocket.
https://www.npr.org/2017/12/27/573556101/taxpayers-may-feel-a-bite-from-a-new-way-of-tracking-inflation "They're eating the pets"
3 time Republican nominee for President
