A simple economic lesson... raise capital gains to 43% will do what?

[hadit]

• President Joe Biden is expected to raise long-term capital-gains tax for the wealthiest Americans to 43.4%, including a surtax. That would be higher than the top federal tax rate on wage income. How the Biden capital gains tax proposal would hit the wealthy

How the Biden capital gains tax proposal would hit the wealthy

President Joe Biden is expected to double the top long-term capital gains rate to 43.4%. But investors shouldn't necessarily rush for the exits.

www.cnbc.com

"Unintended Consequences"...
1) Analyses show that every 10% gain in the capital gains tax rate leads to a 7% change in capital gains realizations. That suggests Biden’s rate increase — which represents a 66% effective increase in the rate, could lead to a 45% to 50% increase in capital gains sales, which could create a large downward force in the market.
So this would mean 401K fund managers would be selling easily 50% reduction in values.
So what are 401ks value today:
About one-third of U.S. adults (35%) said they personally owned stocks, bonds or mutual funds outside of retirement accounts in a Pew Research Center survey from September 2019.
With 39% of the $6 trillion total 401K assets invested in the market..or about $2.4 Trillion will be at risk of dropping at least 50% in value.

401(k) Plan Research: FAQs

Frequently Asked Questions About 401(k) Plan Research How la

www.ici.org

Now that is just the affect on stock market and then on 401ks and then on the 60 million Americans with 401ks.

401(k) Plan Research: FAQs

Frequently Asked Questions About 401(k) Plan Research How la

www.ici.org

Now what about jobs in America?
At one point under Trump

U.S. companies have repatriated $1 trillion since tax overhaul​

U.S. companies have repatriated $1 trillion since tax overhaul

That's still short of the $4 trillion in overseas profits that President Trump would return as a result of the 2017 tax law.

www.latimes.com

Corporations have brought back more than $1 trillion of overseas profits to the U.S. since Congress overhauled the international tax system and prodded companies to repatriate offshore funds, a report showed Thursday. (snip)
Investment banks and think tanks have estimated that American corporations held $1.5 trillion to $2.5 trillion in offshore cash at the time the law was enacted. Before the overhaul, companies were incentivized to keep profits overseas because they owed a 35% tax when bringing it back and could defer payment by keeping funds offshore.
The law set a one-time 15.5% tax rate on cash and 8% on non-cash or illiquid assets.
Compare and contrast the way that Presidents Trump and Obama chose to stimulate the American economy, each of them generating roughly a trillion dollars in “stimulus.”

One trillion dollars have flowed into the American economy as Trump’s tax law changes allowed companies to repatriate profits without tax penalty

President Trump’s tax reform has delivered more than a trillion dollars of stimulus to the American economy through corporations repatriating profits held overseas in order to avoid penalties that the tax law had imposed on bringing home the fu...

www.americanthinker.com

In summary folks... all the economic benefits of the "repatriation" and the capital gains tax cuts will result in nearly $10 trillion in economic losses to 60 million Americans at the minimum!

Who cares about all that? We're gonna GET those rich guys!!!

 

[hadit]

The highest bracket in the 50's was 90% during one of the greatest economic booms in American history. That was deemed fair.

The "hard working Americans" that you are referring to will not feel a tax increase. You somehow conflate the wealthiest of Americans with the "hard working Americans". It's pretty amazing.

No one paid that rate because there were also multitudes of tax shelters readily available. Reagan did away with a lot of them when he cut taxes. And yes, with the exception of the second and third generation wealthy, the wealthiest are among the hardest working Americans. Most of those complaining about the CEO making so much money wouldn't last a week in his job.

 

[hadit]

Exactly. Why should rich people get welfare?

Well, rich people and the elderly living off investments made over a lifetime, but who cares about them?

 

[hadit]

Think of all the money that could come pouring in if they eliminated taxes altogether!

I believe that we all realize the government does not set tax rates to maximize revenue, because there is a sweet spot that generates the most revenue while having the least negative impact on the economy. Instead, the government uses the tax code as a social engineering tool, attempting to influence behavior and appease the angry mob.

 

[hadit]

to the OP, raising capital gains will increase cost of goods around the country. It will deplete 401k funds from millions of hard working americans. And does nothing to impact the lazy people who drink and smoke all day.

Even those people are valuable to the economy. Paris Hilton can inject more money into the economy on a weekend shopping spree than I can in a year.

 

[hadit]

IF ANY OF THE REPUBLICAN TAX AND EMPLOYMENT POLICIES HAD BEEN EFFECTIVE, THE USA WOULD NOT HAVE THE WIDEST WEALTH AND WAGE GAPS IN THE WORLD. THE AMERICAN ECONOMY WOULD NOT HAVE CRASHED 3 TIMES IN THE PAST 40 YEARS. AND WAGES, AS A PERCENTAGE OF COSTS, WOULD NOT BE AT THE SAME LEVELS AS THE GUILDED AGE - BEFORE EMPLOYMENT REGULATION, BEFORE MINIMUM WAGES, AND BEFORE UNIONS.

THE REPUBLICAN PARTY HAS WIPED OUT ALL WORKER WAGE BENEFITS FOR THE PAST 150 YEARS, WITH THEIR REFUSAL TO RAISE MINIMUM WAGES.

THE REPUBLICAN PARTY HAS OVERSEEN THE GREATEST TRANSFER OF WEALTH IN WORLD HISTORY - ALL FROM WORKING AND MIDDLE CLASS AMERICANS TO THE TOP 10% OF CORPORATIONS AND INDIVIDUALS.

OBAMA CHANGED NEITHER WEALTH NOR EMPLOYMENT LAW, AND HIS MOST SIGNIFICANT WAGE CHANGE - OVERTIME REGULATIONS, WAS OVERTURNED BY DONALD TRUMP BEFORE IT WENT INTO EFFECT.

REPUBLICAN EMPLOYMENT AND ECONOMIC POLICY HAS BEEN A DISASTER FOR THE NATION, AND HAS CREATED THE GREATEST WEALTH AND INCOME INEQUITY IN THE FIRST WORLD, AND IS STEADILY DEPLETING THE MIDDLE CLASS AND LOWERING LIFE EXPECTANCY IN THE USA.

Where have the democrats been all this time, then? You do realize that they are complicit in the situation we find ourselves, right?

 

[hadit]

The fastest way to meaningful tax cuts is as follows:

1. Eliminate payroll withholding. The boss doesn't send your tax money to Washington any more, you do. You write a check every quarter just like he did. All he does is report to the IRS how much you owe.
2. Election day falls the day after one of those quarterly payments is due.

That is all that's needed. Everyone expecting a big refund still has to pay in all year to get it, and they will be voting the day after writing one of those expensive checks. Guess who gets elected?

 

[john doe 101]

No one paid that rate

You think people will pay 39.6% LOL!

Reagan did away with a lot of them when he cut taxes.

Reagan raised the payroll tax

Most of those complaining about the CEO making so much money wouldn't last a week in his job.

Making something up out of thin air.

 

[jc456]

If a guy is making $400k a year from his business, he either is A. Self-employed in which he can write off everything under the moon or B. Has his company structured ie a LLC in such a way where HE controls how much he pays himself. Dont need all that money you made this year? DONT PAY IT TO YOURSELF. Now if you do need $400k to survive off of and have to take it just to pay the bills on your multi-million dollar home, your $100k sportscar, and your 2nd home at the lake you could take it as pass through income where up to 20% can be deducted if you set up your corp correctly.

Listen man I'm not going to sit here and go through every single tax loop hole rich people can use to get out of paying their fair share in taxes. But you see that is why people making $400k+ a year can have such a low effective tax rate. So you can keep blathering on and on about how bad the poor guy who makes $400k a year has it, but we all know what is really going on.

what is your point then? are you jealous? I can't quite find the direction you're going.

 

[jc456]

No I am talking about everyone regardless of income.

I've seen people making MW smoke 2 packs a day and buy 3 or 4 coffees a day not to mention eating breakfast and lunch at some fast food shit joint.

And it's the fucking government that's responsible for our debt.

I love it, the demofks think the people are spending the 30 trillion!!!!!! evil fking politicians paying themselves with raises giving pork to their buddies, and not expecting any accountability and we're supposed to bend over and say, thank you sir may I have another. demofks. Lost people of humanity.

 

[Richard-H]

well the stock holders pay tax on the money they get, and that money is after taxes, so indeed, that money is taxed twice. All one has to do is open up the area between the ears.

Yes, it is taxed twice - only if it's distributed to stockholders. Part of the total tax is when it's declared by the company, then the other part when it's distributed to stockholders.

If it's not distributed to stockholders, then it's only partially taxed. If the money is reinvested, the total value of the company increases which means the value of the stock increases.

Is that concept too much for you to comprehend?

 

[Blues Man]

Yes, it is taxed twice - only if it's distributed to stockholders. Part of the total tax is when it's declared by the company, then the other part when it's distributed to stockholders.

If it's not distributed to stockholders, then it's only partially taxed. If the money is reinvested, the total value of the company increases which means the value of the stock increases.

Is that concept too much for you to comprehend?

I think you are confusing dividends and capital gains.

They aren't the same.

 

[Markle]

I suppose for the same reason we have to pay trillions to keep your 401k inflated. That we had to pay billions to the corporate farms that Trump's policies hurt. etc.

You make no sense, whatsoever, which I fully expected.

If President Trump's policies hurt corporate farms, why are food prices skyrocketing today?

Surging Meat Prices Could Cost You Hundreds This Year — Can You Afford It?​

Georgina Tzanetos 3 hrs ago [9/16/2021]
There’s really no other way to say this — prices for beef, poultry and pork have been outrageous this year.

MSN

www.msn.com

 

[john doe 101]

what is your point then? are you jealous? I can't quite find the direction you're going.

God you people are so stupid.

 

[pknopp]

You make no sense, whatsoever, which I fully expected.

If President Trump's policies hurt corporate farms, why are food prices skyrocketing today?

Surging Meat Prices Could Cost You Hundreds This Year — Can You Afford It?​

Georgina Tzanetos 3 hrs ago [9/16/2021]
There’s really no other way to say this — prices for beef, poultry and pork have been outrageous this year.

MSN

www.msn.com

If you wish to argue it was nothing more than a vote bribe, argue that.

You can't argue it didn't happen.

 

[hadit]

You think people will pay 39.6% LOL!



Reagan raised the payroll tax


Making something up out of thin air.

Interesting that you think you can read my mind. You really need to get that foil helmet adjusted because it's not working.

Reagan cut income tax rates dramatically, you know that.

Do you think you could do a CEO's job? I'd like to hear how you would manage that. Just for one thing, what's going to happen in your industry over the next 5 years? You have to know so you can steer the company in the right direction. Another, how much capital are you going to be able to raise to expand so you can hire more people and increase production? Give with the details, how would you do as a CEO?

 

[john doe 101]

Do you think you could do a CEO's job?

That wasnt your original assertion. Also, you are giving me an impossible question to answer, and you know it.

 

[healthmyths]

No one paid that rate because there were also multitudes of tax shelters readily available. Reagan did away with a lot of them when he cut taxes. And yes, with the exception of the second and third generation wealthy, the wealthiest are among the hardest working Americans. Most of those complaining about the CEO making so much money wouldn't last a week in his job.

Thank you! You are right about lasting in the job because many of these CEOs literally have millions of lives depending on their short term and even more long term decisions! While most public held CEOs concentrate on the next quarter's net income and stock prices again even there those concerns affect millions of people's livings.
Yup I agree with you!

 

[hadit]

That wasnt your original assertion.

This was my original assertion:

"Most of those complaining about the CEO making so much money wouldn't last a week in his job."

So again, how would you do a CEO's job? You think I'm making stuff up, tell us how you would do.

 

[john doe 101]

So again, how would you do a CEO's job? You think I'm making stuff up, tell us how you would do.

Whether I can do a ceo job or not doesnt prove your assertion. Besides, even if "most of us" cant do a ceo's job, that does not in and of itself justify the outlandish pay ceo's in America (notice this is an AMERICAN phenomena).