Capital Gains taxes go up 33%

Discussion in 'Stock Market' started by Rocko, Jan 1, 2013.

  1. Rocko
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    Rocko Gold Member

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    If this bill gets passed by the house, I think this will be devastating for the market. I surprised we didn't see more of a sell off prior, even with the January effect kicking in.
     
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  2. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    It will be very devastating for seniors living on their investments. With ZIRP, interest rates are so low that many seniors are investing in dividend paying stocks to make ends meet. With the increase in capital gains rates, they'll see their capital erode as well.

    Thanks Bernanke!
     
  3. Rocko
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    Rocko Gold Member

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    Also, just when housing market was starting to rebound..
     
  4. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    That's a government propped up illusion as well due to abnormally low interest rates.
     
  5. SteadyMercury
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    SteadyMercury Gold Member

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    From what I've read the bill floating right now would raise capital gains from 15% to 20% only for income above 450k.

    Where did you hear that capital gains have gone up to 33%?
     
  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    That's not true. ObamaCare already includes increasing the cap gains rate to 20% for everyone. In addition, couples making more than $250K and singles making more than $200K will pay an additional 3.8% medicare tax on capital gains.

    What ObamaCare Means for Your Taxes - SmartMoney.com
     
  7. SteadyMercury
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    SteadyMercury Gold Member

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    You're confusing Obamacare with the Bush era temporary tax cuts due to expire that are part of the fiscal cliff. Read your own link, the change from 15% to 20% is exactly what I was referring to in my post and it has nothing to do with Obamacare.

    The 3.8% is related to Obamacare, but still doesn't add up to 33% (20+3.8=23.8) and given the income limits I submit it will impact very few retirees that you guys are wringing your hands about.

    So again I ask, where did we get the information that cap gains are going up to 33%? It is my understanding that current bill going to house would raise long term cap gains from 15% to 20% only for households with income > 450k.
     
  8. SteadyMercury
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    SteadyMercury Gold Member

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    I think I get it, he's saying will go up by 33%, which would be 15 to 20.

    Given that it would only apply to households with incomes over 450k do you really think this will "devastate" seniors/retirees?
     
  9. Moonglow
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    Moonglow Diamond Member

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    even though the rates will rise, millions will still be made.
     
  10. Rozman
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    Rozman Gold Member Supporting Member

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    I am very interested to see how the market reacts tomorrow and the rest of this short work week.
     

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