Capital Gains

Question

Well, it looks like rises in capital gains are in the cards boys and girls.

New York Times is running another propaganda piece about Warren Buffett begging to be taxed at a higher rate. (lets just forget that he has been the benificiary of bailouts, paid by tax money).

Who is for this raise?

I work hard and pay my taxes at 20-30% (depending on the government's mood).

Then I invest money. Generally 15% of my paycheck bi-weekly.

I do not do great. I do OK. I might eek out a meager 10% return on my investments.

The government currently takes about 15%. (pretty shitty since i already paid taxes on the money invested).

Now they are talking about raising it?

This is just ridiculous.

And it is being billed as a slap in the face to rich people?

I am not rich. I am barely getting by, trying to put away money for my future.

I had to withdrawal 100 bucks from my trading account last week to get diapers for my newborn.

All this talk is cheap.

When the rubber hits the road it is a bad idea.

rick3117 · Answer

Well, it looks like rises in capital gains are in the cards boys and girls.

New York Times is running another propaganda piece about Warren Buffett begging to be taxed at a higher rate. (lets just forget that he has been the benificiary of bailouts, paid by tax money).

Who is for this raise?

I work hard and pay my taxes at 20-30% (depending on the government's mood).

Then I invest money. Generally 15% of my paycheck bi-weekly.

I do not do great. I do OK. I might eek out a meager 10% return on my investments.

The government currently takes about 15%. (pretty shitty since i already paid taxes on the money invested).

Now they are talking about raising it?

This is just ridiculous.

And it is being billed as a slap in the face to rich people?

I am not rich. I am barely getting by, trying to put away money for my future.

I had to withdrawal 100 bucks from my trading account last week to get diapers for my newborn.

All this talk is cheap.

When the rubber hits the road it is a bad idea.

rick3117 · Answer

If you want to make some serious revenue, how about taxing people with government contracts, or that are the direct beneficiary of bailouts at a 75% level.

wallstreetcappers · Answer

Given our debt levels BEFORE the rate was dropped, it never should have been.It was reckless and stupid with the mess we have been in since 2000.

SarasotaSlim · Answer

Warren Buffett is nothing but a shill for the Obama administration ....begging to be taxed at a higher rate..yet his own company, Berkshire Hathaway has been in a standoff with the IRS over its tax bills..a net unrecognized tax benefits of about $1 billion...

Buffett is an avocate for paying more taxes, but when it comes to his own company’s taxes, he goes into a protracted legal battle with the IRS to pay less....

rick3117 · Answer

Wall, you of all people should understand how this will hurt retail investors.

thirdperson · Answer

If some people are under taxed, tax rules deserve blame.  Not those who follow the rules but try to minimize tax payable.  Generally, the richest minority pay for the majority of taxes if all taxes are counted.  Sale or property taxes may be more than income taxes.   Unfortunately when governments need to increase tax revenue, the least painful way is to tax as many people as possible.

wallstreetcappers · Answer

I really dont think so.What hurts retail investors is the artificial low rates that the FED is orchestrating which kills savings yields.I really disagreed when they were first put in place, it was a big mistake given our fiscal condition. It was the usual political cow-towing at the long term expense of the country.

djbrow · Answer

Well, the government can only tax income on the investments. The government taxes interest income similarly. With that being said, there are so many deductions that can reduce the actual taxation (money contributed before taxes, for example).

The problem, among others, with our system is we continued to look at raising taxes instead of eliminating loopholes. And the loopholes are such that those who should be paying more taxes based on proportion actually pay less because with greater income, one has more expandable methods of income access. The example I cited above is primary....one can take a huge portion of their income before taxes, and invest, thus avoiding income taxes on the monies.

SarasotaSlim · Answer

"one can take a huge portion of their income before taxes, and invest, thus avoiding income taxes on the monies"&#xD;&#xA;True.. that&#x27;s why Congress will be looking at reducing the amount one can contribute to a 401K ...........

thirdperson · Answer

Increasing tax rates is better than eliminating most tax loopholes which would be more harmful.   The biggest loopholes are beneficial and worth keeping.  Imagine losing deductions for employer health insurance, mortgage interest, pension benefits, RRSP or medicare?

djbrow · Answer

&#xD;&#xA;I cannot. &#xD;&#xA;I can imagine eliminating the mortgage deduction on a 2nd home worth over 500,000, the tax free action of moving pre-taxed earnings to investments for those earning over $150,000, etc. &#xD;&#xA;As always, I think the devil is in the details.

14daroad · Answer

Every single instance in the history of America when Cap Gains taxes were cut, revenue from that source went up (see 1997-00 & 2003-06).

The idea that Cap Gains taxes should be raised is silly.

depeche2 · Answer

[Quote: Originally Posted by SarasotaSlim]  "one can take a huge portion of their income before taxes, and invest, thus avoiding income taxes on the monies"&#xD;&#xA;True.. that&#x27;s why Congress will be looking at reducing the amount one can contribute to a 401K ...........  [/Quote]I doubt that.  It went up from 17k to 17.5k for next year.  I don&#x27;t think is what anyone is talking about as a huge write-off for the rich.

depeche2 · Answer

Are you investing 15% of your paycheck into a retirement account (401k, ira, roth ira, etc.) or into a regular taxable brokerage account where you buy stocks and funds?If you had to withdraw 100 bucks from your trading account last week for diapers then you&#x27;re allocating something wrong here.

rick3117 · Answer

Regular brokerage account.
It is auto-deducted from my paycheck.

I actually cancelled the auto deduct while my wife is on maternity leave, but it didn't go through.

The point is that people in my situation will be affected by this middle class tax hike.

SarasotaSlim · Answer

&#xD;&#xA;That is right ..they are scheduled to go up to 17.5K ..But if there is a full-scale tax reform there could be a cut or limit to certain tax brackets ..

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