Jump to content
Guest #1Stunner

President Biden proposing a large Capital Gains Tax hike on the Wealthy

Recommended Posts

Guest #1Stunner

https://www.bloomberg.com/news/articles/2021-04-22/biden-to-propose-capital-gains-tax-as-high-as-43-4-for-wealthy

Biden Eyeing Capital Gains Tax as High as 43.4% for Wealthy

President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6%, which, coupled with an existing surtax on investment income, means that federal tax rates for investors could be as high as 43.4%, according to people familiar with the proposal.

The plan would boost the capital gains rate to 39.6% for those earning $1 million or more, an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public. A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than the top rate on wage and salary income, they said.

Stocks slid on news about the plan, with the S&P 500 Index down as much as 0.6% after climbing 0.2% earlier. The Nasdaq Composite fell 0.4% as of 1:15 p.m. after rising as much as 0.5%. Ten-year Treasury yields erased gains

For $1 million earners in high-tax states, rates on capital gains could be above 50%. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%.

 

Link to post
Share on other sites
50 minutes ago, #1Stunner said:

https://www.bloomberg.com/news/articles/2021-04-22/biden-to-propose-capital-gains-tax-as-high-as-43-4-for-wealthy

Biden Eyeing Capital Gains Tax as High as 43.4% for Wealthy

President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6%, which, coupled with an existing surtax on investment income, means that federal tax rates for investors could be as high as 43.4%, according to people familiar with the proposal.

The plan would boost the capital gains rate to 39.6% for those earning $1 million or more, an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public. A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than the top rate on wage and salary income, they said.

Stocks slid on news about the plan, with the S&P 500 Index down as much as 0.6% after climbing 0.2% earlier. The Nasdaq Composite fell 0.4% as of 1:15 p.m. after rising as much as 0.5%. Ten-year Treasury yields erased gains

For $1 million earners in high-tax states, rates on capital gains could be above 50%. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%.

 

If this passes, there will be a rush to Roth conversions for your IRA. Probably lots of selling for the wealthy to put their money in tax havens. They certainly aren't going to reinvest with those types of proposed capital gains and corporate rate increases.

  • Like 1
Link to post
Share on other sites
Guest #1Stunner
Just now, NMpackalum said:

If this passes, there will be a rush to Roth conversions for your IRA. Probably lots of selling for the wealthy to put their money in tax havens. They certainly aren't going to reinvest with those types of proposed capital gains and corporate rate increases.

I agree.  I doubt it will hurt the ultra rich, as they will find a way around it.

It will probably hurt the average joe, though.  I know it is directed toward millionaires, but we'll see. 

Link to post
Share on other sites
33 minutes ago, IanforHeisman said:

Indoctrination is complete when people making 40k a year are up in arms over this. 

Yep. My dad is FURIOUS about these tax increases that will affect only those making $400k+. When I reminded him that he and my mom's retirement is mid 5 figures he still didn't buy it.

Mention taxes to a boomer and watch the steam come out of their ears.

Link to post
Share on other sites
42 minutes ago, IanforHeisman said:

Indoctrination is complete when people making 40k a year are up in arms over this. 

It sounds like stunner is getting his protest gear ready to go and support the upset minimum wager earners heading down to state capitols with picket signs with Biden is stealing our money messages. 

  • Haha 1
Link to post
Share on other sites
59 minutes ago, IanforHeisman said:

Indoctrination is complete when people making 40k a year are up in arms over this. 

They're outraged because they spent their stimulus money on Dogecoin and wanna get rich too.

Link to post
Share on other sites
40 minutes ago, East Coast Aztec said:

I wonder if this is a positive for buyers in the housing market, I certainly hope so.

I would suspect it's a negative for buyers at least in the short term. Those millionaires will cash out and buy houses and apartments for income likely driving prices up.

Link to post
Share on other sites
29 minutes ago, WYO1016 said:

Yep. My dad is FURIOUS about these tax increases that will affect only those making $400k+. When I reminded him that he and my mom's retirement is mid 5 figures he still didn't buy it.

Mention taxes to a boomer and watch the steam come out of their ears.

yep.   Can see that impact on cost of going to college and underfunded public schools.   Boomers enjoyed cheap tuition and well funded schools in their day but it is a different story now that it is their turn to pay.

  • Like 2
Link to post
Share on other sites
Guest #1Stunner
25 minutes ago, utenation said:

It sounds like stunner is getting his protest gear ready to go and support the upset minimum wager earners heading down to state capitols with picket signs with Biden is stealing our money messages. 

I did well in the stock market this year.  

So yes, I am watching capital gains closely.

Link to post
Share on other sites
2 minutes ago, #1Stunner said:

I did well in the stock market this year.  

So yes, I am watching capital gains closely.

That’s great man.. I’m just pointing out that the GOP blanket statement of this is going to screw over all income levels is alive and well. 

  • Like 1
  • Cheers 1
Link to post
Share on other sites
3 minutes ago, #1Stunner said:

I did well in the stock market this year.  

So yes, I am watching capital gains closely.

Only matters is you sell the asset(s). Let me guess, you're a landlord?

Link to post
Share on other sites
Guest #1Stunner
4 minutes ago, utenation said:

That’s great man.. I’m just pointing out that the GOP blanket statement of this is going to screw over all income levels is alive and well. 

I'm an Independent.  I voted twice for President Obama.  And didn't support Trump or the Democrats in the past 2 elections (I didnt like the choices).

My good, lucky stock gain is a one time event...I'm not rich.

Regarding the tax wealthy, my comment is that they find tax shelters and avoid paying.  I think they'll do the same again.

Link to post
Share on other sites
Guest #1Stunner
2 minutes ago, AztecSU said:

Only matters is you sell the asset(s). Let me guess, you're a landlord?

No.  I am not a landlord. 

I prefer the stock market.  (For now, anyway).

Link to post
Share on other sites
Guest #1Stunner

I'll say this.

I doubt this passes.

Democrats give lip service to things like they will raise capital gains taxes, forgive student loans, medicare for all, help renters buy a house...

But it won't happen, or whatever they do will be very watered down and not what they promised.

They are corporatists, and obligated to their mega rich donors.  Same as the Republicans.

Link to post
Share on other sites
30 minutes ago, NMpackalum said:

I would suspect it's a negative for buyers at least in the short term. Those millionaires will cash out and buy houses and apartments for income likely driving prices up.

If they fear sell now before the rate goes up and the moratoriums are lifted, fine by me.  I can wait.  Sell it all!  

Link to post
Share on other sites
21 minutes ago, #1Stunner said:

I'm an Independent.  I voted twice for President Obama.  And didn't support Trump or the Democrats in the past 2 elections (I didnt like the choices).

My good, lucky stock gain is a one time event...I'm not rich.

Regarding the tax wealthy, my comment is that they find tax shelters and avoid paying.  I think they'll do the same again.

Didn’t you say the average Joe will be hit by this as well?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.




×
×
  • Create New...