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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Anyone want to talk about Biden's Capital gain tax reform?
Pros?
Cons?
Likelihood of working to generate revenue?
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Posted 4/26/21 2:47 PM  |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Anyone want to talk about Biden's Capital gain tax reform?
https://www.cnbc.com/2021/04/22/how-the-biden-capital-gains-tax-proposal-would-hit-the-wealthy.html
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Under Biden’s proposal, the federal capital-gains tax rate would be as high as 43.4% (including an existing Medicare surcharge), according to a Bloomberg report.
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Investors currently pay a 23.8% top rate on long-term capital gains.
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The White House plan would instead tax capital gains as ordinary income, at a top proposed rate of 39.6%. It would apply to those with more than $1 million in annual income, according to Bloomberg.
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The top long-term capital-gains rate applies to single taxpayers with more than $445,850 of income this year. (It kicks in above $501,600 for married couples filing a joint tax return.)
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Right now, it seems like there are too many unknowns to guess what effects it might have, if it can even pass. Definitely something to keep an eye on. It won't affect me directly, but any type of major finance changes has ripple effects.
Message edited 4/26/2021 4:30:03 PM.
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| Posted 4/26/21 4:29 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
I am surprised at some of the arguments that I am hearing on CNBC.
One of which is a business owner that has a one time sale that raised his/her income over 1 mm. To me, that person can control when they sell their appreciated stocks. It takes a long time to sell a business so do some tax planning.
They can't come out and whine about it because they are complaining about being hungry with a loaf of bread under their arms.
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| Posted 4/26/21 5:40 PM |
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RomeyT
LIF Infant
Member since 1/21 355 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
Posted by CookiePuss
Pros?
Cons?
Likelihood of working to generate revenue?
It’s going to drive business offshore and decrease revenue in the long term. If you want to attract business (and jobs and wage increases) you create tax havens to entice businesses. This is only attractive to Biden’s voting base because it’s the Robin Hood mentality.
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| Posted 4/26/21 7:40 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
Posted by RomeyT
Posted by CookiePuss
Pros?
Cons?
Likelihood of working to generate revenue?
It’s going to drive business offshore and decrease revenue in the long term. If you want to attract business (and jobs and wage increases) you create tax havens to entice businesses. This is only attractive to Biden’s voting base because it’s the Robin Hood mentality.
I don't think a raising the long tern cap. gains tax is going to drive business offshore.
Raising corp. tax would be more likely to do that.
I don't really see how the LTCG rate is going to do much of anything. It's very easy to control your CG tax liabilities in regards to selling securities.
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| Posted 4/26/21 8:16 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
The Robinhood scenario really don't do much in regards to business and revenue.
That was just a squeeze on Wall Street to some greedy hedge funds. And, Wall Str. did it right back to the odd lot investor...that is why the stock price is still at $178. Wall Street started playing long/short with it and baited some less then savvy investors.
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| Posted 4/26/21 8:18 PM |
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LittleDiva
LIF Adult
Member since 9/11 1284 total posts
Name:
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Anyone want to talk about Biden's Capital gain tax reform?
Unless you are a millionaire it won’t directly affect you. But these people didn’t get rich by being dumb. They know how to work the system. They will find loopholes and in the end it will some how end up hurting the middle class.
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| Posted 4/26/21 9:44 PM |
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RomeyT
LIF Infant
Member since 1/21 355 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
Posted by LittleDiva
Unless you are a millionaire it won’t directly affect you. But these people didn’t get rich by being dumb. They know how to work the system. They will find loopholes and in the end it will some how end up hurting the middle class.
Absolutely true. The rich are always one step ahead of the game-and usually in the pockets of Washington-so all of this is Malarkey.
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| Posted 4/27/21 1:08 PM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
Posted by RomeyT
Posted by LittleDiva
Unless you are a millionaire it won’t directly affect you. But these people didn’t get rich by being dumb. They know how to work the system. They will find loopholes and in the end it will some how end up hurting the middle class.
Absolutely true. The rich are always one step ahead of the game-and usually in the pockets of Washington-so all of this is Malarkey.
It will impact more than just millionaires. It could impact people like us if we are selling homes. The price you get for you house gets counted as income. So in that year if you make 200k and sell your house for 850k you are now over the threshold and will be hit with the capital gains tax. If you are left money from a relative that isn't protected in a trust it will be considered part of your income. The rich often have access to loop holes as stated above. Some of these "loop holes" are expensive to set up (i.e. irrevocable trusts)This will hurt more middle class people because they don't have the same access and ways to shield their money.
Making the wealthy pay isn't always as easy as it seems. Every president has had a chance to close the loop holes but none ever do.
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| Posted 5/11/21 3:39 PM |
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LittleDiva
LIF Adult
Member since 9/11 1284 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
Posted by Jenhos
Posted by RomeyT
Posted by LittleDiva
Unless you are a millionaire it won’t directly affect you. But these people didn’t get rich by being dumb. They know how to work the system. They will find loopholes and in the end it will some how end up hurting the middle class.
Absolutely true. The rich are always one step ahead of the game-and usually in the pockets of Washington-so all of this is Malarkey.
It will impact more than just millionaires. It could impact people like us if we are selling homes. The price you get for you house gets counted as income. So in that year if you make 200k and sell your house for 850k you are now over the threshold and will be hit with the capital gains tax. If you are left money from a relative that isn't protected in a trust it will be considered part of your income. The rich often have access to loop holes as stated above. Some of these "loop holes" are expensive to set up (i.e. irrevocable trusts)This will hurt more middle class people because they don't have the same access and ways to shield their money.
Making the wealthy pay isn't always as easy as it seems. Every president has had a chance to close the loop holes but none ever do.
I could be totally wrong, but doesn’t capital gains only count if you sell within a certain time frame of when you bought? Like if you buy low and sell a year later for $200k more than you bought than you are hit with capital gains tax? If not, Long Island is in trouble because houses are selling for $$$$
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| Posted 5/11/21 10:05 PM |
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LuckyStar
LIF Adult
Member since 7/14 7272 total posts
Name:
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Re: Anyone want to talk about Biden's Capital gain tax reform?
Posted by LittleDiva
Posted by Jenhos
Posted by RomeyT
Posted by LittleDiva
Unless you are a millionaire it won’t directly affect you. But these people didn’t get rich by being dumb. They know how to work the system. They will find loopholes and in the end it will some how end up hurting the middle class.
Absolutely true. The rich are always one step ahead of the game-and usually in the pockets of Washington-so all of this is Malarkey.
It will impact more than just millionaires. It could impact people like us if we are selling homes. The price you get for you house gets counted as income. So in that year if you make 200k and sell your house for 850k you are now over the threshold and will be hit with the capital gains tax. If you are left money from a relative that isn't protected in a trust it will be considered part of your income. The rich often have access to loop holes as stated above. Some of these "loop holes" are expensive to set up (i.e. irrevocable trusts)This will hurt more middle class people because they don't have the same access and ways to shield their money.
Making the wealthy pay isn't always as easy as it seems. Every president has had a chance to close the loop holes but none ever do.
I could be totally wrong, but doesn’t capital gains only count if you sell within a certain time frame of when you bought? Like if you buy low and sell a year later for $200k more than you bought than you are hit with capital gains tax? If not, Long Island is in trouble because houses are selling for $$$$
2 years. You pay the % on the profit less closing costs/improvements.
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| Posted 5/12/21 2:43 AM |
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