Republicans now want to eliminate taxes on most of the rich

Discussion in 'Politics' started by OohPooPahDoo, Sep 7, 2011.

  1. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Five GOP Presidential Candidates Have Proposed Eliminating Capital Gains Tax, A $1 Trillion Giveaway To The Rich | ThinkProgress

    Awesome. So for those unaware - the way MOST of the filthy rich make their income is by capital gains. They pay 15% on their income obtained by capital gains. The exceptions would be those filthy rich that actually get up and work everyday - successful businessmen, salaried CEO's, highly paid doctors, etc. - those rich folk have to pay bout 35% on their income.

    Now the Republicans propose we allow the former class - those that make their money off of pushing electronic pieces of paper around without actually producing anything - should pay ZERO taxes.

    The richest of the rich presently average 17% in income tax because most of their income is taxed at the 15% rate. Under the Republican plan to eliminate taxes on capital gains - their tax rate would drop down to 2%.



    2% tax on the uber rich

    While I pay 15%

    And no doubt many posters on this board pay considerably more.

    The Republican plan is the fuck the middle class as hard as possible and give everything to the rich - especially the unproductive rich
     
  2. Quantum Windbag
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    Quantum Windbag Gold Member

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    Why do you want to tax people who sell their houses in order to enjoy their retirement? Don't you think the fact that they already paid taxes on all the money before they bought the house counts?
     
  3. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Why do you try to put words in people's mouths like a jackass bitch?
    There's already a 250k exclusion on capital gains from sale of a primary residence. Seems reasonable to me.

    You don't pay a tax on the principal amount, you pay it on the GAIN. Hence - capital GAIN.
     
  4. Quantum Windbag
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    Quantum Windbag Gold Member

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    I did not put words in your mouth, you did. You are the one that wants to raise capital gains taxes. FYI, the median home price in LA is $360,000. That $250,000 exemption does not go very far.

    Are you trying to teach grandpa how to suck eggs?

    People buy houses as an investment. I know people in CA that paid $80,000 for houses that are worth almost a $1 million dollars now. They are fucked under the current capital gains tax structure.

    As for the "rich," who you want to go after for their capital gains, my guess is you think that stocks are pretty much tax free. The truth is that every bit of income from stocks is taxed twice before it even gets to the stockholder that actually owns the stock. Add in the capital gains tax and it is taxed three times. and most people who own stocks are not rich. Sit around a Starbucks sometime and find out how many people are there for stock tips, and how few of them can afford to by even single shares of Apple. Yet they still have to pay capital gains taxes.

    Is it my fault you are stupid?
     
  5. Charles_Main
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    Charles_Main AR15 Owner

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    Anyone who sells their house(over 250k), or Profits on stocks or bonds pays Capital Gains. Not just the rich bud. You really need to stop drinking the koolaide.

    Eliminating the Capital Gains tax would be a massive boost to investment in this country. Both From Americans and From Abroad.
     
    Last edited: Sep 7, 2011
  6. Quantum Windbag
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    Quantum Windbag Gold Member

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    Eliminating the capital gains tax is such a good idea that it was actually part of Obama's pre election plan for the economy. If the man had any ability to stick to his promises the country would be in better shape right now.
     
  7. Charles_Main
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    Charles_Main AR15 Owner

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    Thanks for reminding me about that. I had almost forgotten. Even Obama understands that at least a temporary suspension of the CG tax would mean a massive influx of Investment in American Companies. Which can only be good.
     
  8. Article 15
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    Article 15 Dr. House slayer

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    The exemption is on the gain not the price of the home.
     
  9. Article 15
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    Article 15 Dr. House slayer

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    lol

    Having to pay taxes on a $920k profit is "fucked" now

    Sign me up for that raping all day.
     
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  10. OohPooPahDoo
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    Do we have to go through this again? Its a tax on the capital GAIN? Do you know what friggin GAIN is?

    Unless you bought your 360k home for less than 110k - NO TAXABLE GAIN.

    We bought ours to live in.

    Why? Because they have to pay

    15% X ($1,000,000 sale price - $80,000 purchase price - $250,000 exclusion) = $100,500 in capital gains taxes, with net proceeds of $819,500 after the purchase price and taxes? Yeah - poor babies - my heart goes out to them. If I see them on the street I'll make sure to give them a dollar.

    They also get to tack any addition of capital to the house itself to the cost basis - so if they add a $50,000 extra room, that is subtracted from the sale price when figuring gains. So it really is an actual GAIN - you aren't being taxed on the money you put into the house to increase its value.


    Your guesses so far about what I think have been woefully inaccurate.
    No it isn't. Capital gains from sale of stock by the investor does not trigger any taxation at all on the underlying corporation. Corporate entities are taxed as any other legal entity is - based on their profits - not their market capitalizations.


    .
    No it isn't. You can't do math.

    If I spend $100 of my after tax income on a stock - then that $100 has been taxed already.

    If I then sell the stock for $150, only my gain, the $50 is taxed. The original $100 was already taxed, and is not taxed again.

    No double taxation.


    Dude what the fuck are you talking about?

    So now anyone who is against giving favored tax status to paper pushers is stupid. Got it.



    The capital gains tax is already structured to favor the rich. There are even net regressive taxes. Take the depreciation of rental property. When you depreciate the property, your tax benefit is equal to your marginal tax rate times the depreciation amount. So those with the higher marginal tax rates have the higher benefit due to depreciation. But when you sell the property, the capital gains tax on the recaptured depreciation is 25% no matter what. So the rich get a higher tax benefit from the depreciation of the property than the middle class and poor - while everyone has to pay the same tax penalty when they sell their property- thus a net regressive tax.

    Take my case. Marginal rate is 15%. Depreciation recapture is 25%. Thus the benefit from depreciation minus the penalty from depreciation recapture is 15% - 25% = -10%. I LOSE 10%. On the other hand, someone who is in the 35% bracket - will get a 35% benefit minus a 25% penalty = +10%. They GAIN 10% in the exchange! So essentially the net tax CREDIT on the depreciation and its recapture that the rich enjoy is PAID FOR BY POOR AND MIDDLE CLASS PEOPLE.

    Don't you understand? THE RICH WRITE THE TAX CODE. This is why they generally pay a LOWER RATE THAN YOU on their INCOME. They decree their income to be special - different than yours - so its OK to tax it differently -or now, as we see, NOT AT ALL.
     
    Last edited: Sep 7, 2011

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