Capital Gains taxes go up 33%

[Koios]

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.

It looks like investors paying five cents more on a profit dollar wasn't as devastating as you hoped.

Where'd you get 5 cents more on a profit dollar? Whatever that means.

Capital gains tax is 58% higher than it was last year, for anyone making 400k or more. That's not a good thing for the market.

Bullshit fuzzy math with imagined increases in the future, on a worst case senario and far, far from "anyone" with more than $400 grand in long-term gains. And many of those folks already locked in 15% by selling and then seconds later repurchasing the stocks, etc, before year end.

 

[Rocko]

It looks like investors paying five cents more on a profit dollar wasn't as devastating as you hoped.

Where'd you get 5 cents more on a profit dollar? Whatever that means.

Capital gains tax is 58% higher than it was last year, for anyone making 400k or more. That's not a good thing for the market.

5 cents (5/100ths) is merely another way of expressing 5%, which is the delta change in LTCGs.

Note that they were reduced as part of the Bush Tax Cuts by 25%, since 20% - 5% = 15%. (1/4th) Now they've returned to 20%, which is a 33% increase. (1/3rd) But don't let the bigger percentage number frighten you, since it's relative to smaller number that LTCGs became when they were reduced in hope of increasing growth in the economy, yet growth slowed and then the economy went into the shitter, in 2008, as you may recall.

I was referring to the term "dollar profit", by which he meant for every dollar profited.

The tax is not 20%, it's 23.8%, which is 58% higher than last year.

 

[Koios]

Where'd you get 5 cents more on a profit dollar? Whatever that means.

Capital gains tax is 58% higher than it was last year, for anyone making 400k or more. That's not a good thing for the market.

5 cents (5/100ths) is merely another way of expressing 5%, which is the delta change in LTCGs.

Note that they were reduced as part of the Bush Tax Cuts by 25%, since 20% - 5% = 15%. (1/4th) Now they've returned to 20%, which is a 33% increase. (1/3rd) But don't let the bigger percentage number frighten you, since it's relative to smaller number that LTCGs became when they were reduced in hope of increasing growth in the economy, yet growth slowed and then the economy went into the shitter, in 2008, as you may recall.

I was referring to the term "dollar profit", by which he meant for every dollar profited.

The tax is not 20%, it's 23.8%, which is 58% higher than last year.

Nah; it's 20% on the vast majority of non-exempt gains.

 

[Rocko]

5 cents (5/100ths) is merely another way of expressing 5%, which is the delta change in LTCGs.

Note that they were reduced as part of the Bush Tax Cuts by 25%, since 20% - 5% = 15%. (1/4th) Now they've returned to 20%, which is a 33% increase. (1/3rd) But don't let the bigger percentage number frighten you, since it's relative to smaller number that LTCGs became when they were reduced in hope of increasing growth in the economy, yet growth slowed and then the economy went into the shitter, in 2008, as you may recall.

I was referring to the term "dollar profit", by which he meant for every dollar profited.

The tax is not 20%, it's 23.8%, which is 58% higher than last year.

Nah; it's 20% on the vast majority of non-exempt gains.

it's not 20% for anyone.

Snapshot of 2013 Federal Capital Gain Tax Rates
Single Taxpayer
Married Filing Jointly
Capital Gain
Tax Rate
Section 1411
Medicare Surtax
Combined
Tax Rate
$0 - $36,250
$0 - $72,500
0%
0%
0%
$36,250 - $200,000
$72,500 - $250,000
15%
0%
15%
$200,000 - $400,000
$250,000 - $450,000
15%
3.8%
18.8%
$400,001+
$450,001+
20%
3.8%
23.8%

Capital Gain Tax Rate Increases in 2013

 

[Koios]

I was referring to the term "dollar profit", by which he meant for every dollar profited.

The tax is not 20%, it's 23.8%, which is 58% higher than last year.

Nah; it's 20% on the vast majority of non-exempt gains.

it's not 20% for anyone.

Snapshot of 2013 Federal Capital Gain Tax Rates
Single Taxpayer
Married Filing Jointly
Capital Gain
Tax Rate
Section 1411
Medicare Surtax
Combined
Tax Rate
$0 - $36,250
$0 - $72,500
0%
0%
0%
$36,250 - $200,000
$72,500 - $250,000
15%
0%
15%
$200,000 - $400,000
$250,000 - $450,000
15%
3.8%
18.8%
$400,001+
$450,001+
20%
3.8%
23.8%

Capital Gain Tax Rate Increases in 2013

Okay, pick me a LTCG amount that equates to a 53% increase v. a couple weeks, plus, back.

Go hog wild.

 

[Rocko]

Nah; it's 20% on the vast majority of non-exempt gains.

it's not 20% for anyone.

Snapshot of 2013 Federal Capital Gain Tax Rates
Single Taxpayer
Married Filing Jointly
Capital Gain
Tax Rate
Section 1411
Medicare Surtax
Combined
Tax Rate
$0 - $36,250
$0 - $72,500
0%
0%
0%
$36,250 - $200,000
$72,500 - $250,000
15%
0%
15%
$200,000 - $400,000
$250,000 - $450,000
15%
3.8%
18.8%
$400,001+
$450,001+
20%
3.8%
23.8%

Capital Gain Tax Rate Increases in 2013

Okay, pick me a LTCG amount that equates to a 53% increase v. a couple weeks, plus, back.

Go hog wild.

What do you mean pick an amount?

 

[Koios]

it's not 20% for anyone.

Capital Gain Tax Rate Increases in 2013

Okay, pick me a LTCG amount that equates to a 53% increase v. a couple weeks, plus, back.

Go hog wild.

What do you mean pick an amount?

Such as $1.6 million. Or $50 grand. Or ... pick an amount, then show before and after, and calulate the percentage increase.

Simple to do, I'd think.

 

[SteadyMercury]

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.

When the market plummets thousands of points, everyone involved will be effected.

I'm sure you made a killing with your extremely accurate predictions of the stock market's reaction to the passing of this bill.

Don't quit your day job.