Debunking Liberal Myths About the Rich and the Capital Gains Tax

[Lesh]

There are a lot of retired people that live off their long term gains…a lot…what the f are you talking about?

Most who make under $100K pay zero tax on long term capital gains.

That is unlikely to change.

What should change is those making over half a mil and only paying 20%

 

[jc456]

There are a lot of retired people that live off their long term gains…a lot…what the f are you talking about?

She’s a demofk

 

[jc456]

Most who make under $100K pay zero tax on long term capital gains.

That is unlikely to change.

What should change is those making over half a mil and only paying 20%

WTF. You can’t still be this ignorant

 

[jc456]

In my case, money taken out of my 401Ks, minimum annual disbursement(distribution), is just another source of income in the appropriate line on my 1040 Income Tax return/filing. Becomes part of the formula for determining taxable amount of income, which then sets "tax bracket".

"Growth" in my 401Ks has varied over the years, IIRC there were a couple where it declined/reversed = no gain, rather loss instead.

Those who live off of the taxpayers usually have no grasp on risk and loss* potential in the part of the economy where wealth is produced versus the 'public' sector that lives off of stealing from, errrr "taxing" the producers.

* so-called capital GAIN is not a guarantee. Capital loss is also a possibility.

I've rolled all my 401K money to an IRA. haven't needed to pull any money from it, so technically I haven't paid a dime in taxes and my earnings are pretty flat. Not much gain due to the poor economics of creepy!!!

 

[Lesh]

I've rolled all my 401K money to an IRA. haven't needed to pull any money from it, so technically I haven't paid a dime in taxes and my earnings are pretty flat. Not much gain due to the poor economics of creepy!!!

You’re really bad at this then. My 401 is doing really well

 

[jc456]

You’re really bad at this then. My 401 is doing really well

What a person on the internet says

 

[ThisIsMe]

The claim was that all those 401s that people have are taxed at the capital gains rate

That is false

401k’s never entered the discussion until you brought it up. They were just talking about capital gains on investments

 

[Lesh]

401k’s never entered the discussion until you brought it up. They were just talking about capital gains on investments

Actually some wing nut tried to claim that capital gains had something to do with 401s

Glad we put that stupid shot to bed

Capital gains are basically for the rich

 

[Toddsterpatriot]

Actually some wing nut tried to claim that capital gains had something to do with 401s

Glad we put that stupid shot to bed

Capital gains are basically for the rich

I benefit from capital gains all the time.

 

[Lesh]

I benefit from capital gains all the time.

So?

 

[Grumblenuts]

What a person on the internet says

 

[Toddsterpatriot]

So?

I'm not "basically rich".

 

[ThisIsMe]

Actually some wing nut tried to claim that capital gains had something to do with 401s

Glad we put that stupid shot to bed

Capital gains are basically for the rich

Ok, but the argument was that “people should pay taxes on their capital gains” and my response was “they DO pay taxes on their gains”, when they cash them out, which is how it should be.

 

[Lesh]

Ok, but the argument was that “people should pay taxes on their capital gains” and my response was “they DO pay taxes on their gains”, when they cash them out, which is how it should be.

At what rate? Half of what ordinary folks pay on income?

 

[Toddsterpatriot]

At what rate? Half of what ordinary folks pay on income?

Liar.

 

[Grumblenuts]

Turns out we've pampered some folks.. while torturing others..

 

[jc456]

Turns out we've pampered some folks.. while torturing others..

who's that? Hunter? hhahahahaahahhahaaha

Now there's a fktard that's pampered like diapers

 

[ThisIsMe]

At what rate? Half of what ordinary folks pay on income?

Short term capital gains generally are taxed at normal income rates. Long term capital gains are an incentive for people to invest in companies and hold on to those investments long term.

Investments are a gamble. As we saw in 2020, the markets could fluctuate wildly. There is no guarantee an investment will make money. If you lose money in the market, should the government refund you tax money from your capital loss?

 

[surada]

Liberals endlessly argue that the rich are not paying their fair share because many rich people do not pay income taxes but "only" pay capital gains taxes. Many rich people do not work for anyone and therefore do not receive a salary--and thus do not pay income taxes. These rich folks earn their money via capital gains and therefore they pay capital gains taxes.

Okay, well, if you make between $47K and $519K in capital gains, your capital gains tax rate is 15%. If you make over $519K in capital gains, your capital gains tax rate is 20%. This is well above the tax rate paid by most employed Americans. Tax data show that 77% of Americans pay an income tax rate of 15%. If your household income is between $22K than $89.4K, your income tax rate is only about 11% (since the income tax is graduated and the first $21K of household income is taxed at a rate of only 10%).

Anyone can confirm these facts by checking the federal capital gains tax brackets and the federal income tax brackets.

So, rich people who earn their money from capital gains do not pay a lower tax rate than most other Americans--they pay a higher tax rate than most other Americans.

Furthermore, these numbers do not include the enormous amount of taxes that many rich people pay in state and local property taxes, and the rich, unlike most other people, do not get a tax deduction for all of those taxes.

https://www.axios.com/2024/08/23/kamala-harris-unrealized-capital-gains-tax

It applies only to individuals with at least $100 million in wealth who do not pay at least a 25% tax rate on their income (inclusive of unrealized capital gains). Payments can be spread out over subsequent years.
Within that $100 million club, you'd only pay taxes on unrealized capital gains if at least 80% of your wealth is in tradeable assets (i.e., not shares of private startups or real estate). One caveat for this illiquid group is that there would be a deferred tax of up to 10% on unrealized capital gains upon exit.
In short, it would not apply to most startup founders or investors. If any group should be tweeting mad face emojis, it's top hedge fund managers.

 

[Cellblock2429]

https://www.axios.com/2024/08/23/kamala-harris-unrealized-capital-gains-tax

It applies only to individuals with at least $100 million in wealth who do not pay at least a 25% tax rate on their income (inclusive of unrealized capital gains). Payments can be spread out over subsequent years.
Within that $100 million club, you'd only pay taxes on unrealized capital gains if at least 80% of your wealth is in tradeable assets (i.e., not shares of private startups or real estate). One caveat for this illiquid group is that there would be a deferred tax of up to 10% on unrealized capital gains upon exit.
In short, it would not apply to most startup founders or investors. If any group should be tweeting mad face emojis, it's top hedge fund managers.

/——/ The super wealthy are smarter than your idiot politicians. They will offshore their money so Commie Harris can’t touch it.
And don’t think for a moment that it won’t eventually filter down to everyone. It always does. But that’s your end game, right?