Taxes, Taxes, Taxes - Biden Raising Long Term Capital Gains Tax

[scotchtiger]

Yes. The first proposal is to raise the capital gains tax to 37% for those who earn over $1mm/year in income. The second proposal - which the 44.6% number comes from - would only apply to those individuals with taxable income above $1 million and investment income above $400,000.

It's essentially a 9% LTCG increase on those making >$1mm/year.

Just had a call with my CPA because I'm selling some stock options in a tender offer. My all-in cap gains rate with LTCG, state (4%) and some other surcharge (3.8%) is right around 28%. So the 44.6% would be significantly more than a 9% increase. If that 44.6% does not include the two other categories, then we're at 52.4% on LTCGs, which is preposterous.

Even the 37% option comes to a total of 45% vs 28% current. That’s a 61% increase. Completely absurd.

 

[TigerRagRob]

Pretty sure I read this only affects those whose income is $1 million a year or more, no?

Pretty sure i read I could keep my current insurance and doctor with Obamacare and there were wmd's in Iraq...

 

[TigerRagRob]

Eliminating 1031s will cripple CRE markets and bring them to a standstill. Upping L/T cap gains to 44% will slow the flow of money in capital markets massively. Both are horrendous ideas.

Will send us crashing into a depression like a hundred years ago...

 

[TigerRagRob]

Israel - dumping all over an inferior enemy (and has been for a long, long time) with superior weaponry and technology (that we supply them with.)
Ukraine - Has been under attack by a country with a superior military and economy for the last ~2 years (not counting the 2014 unlawful invasion/annexation) and is only surviving thanks to weaponry and technology that the west supplies them with.

In one war, we're supplying the underdog who's being relentlessly invaded by a superior force. In the other war, we're supplying the bully who's committing war crimes on a near weekly basis.

These things are not the same.

An enemy that has long stated it wont stop attacking and killing them until every Jew is dead and not just in Israel either? So you support the murder of ever Jew in the world?

 

[fatpiggy]

Just had a call with my CPA because I'm selling some stock options in a tender offer. My all-in cap gains rate with LTCG, state (4%) and some other surcharge (3.8%) is right around 28%. So the 44.6% would be significantly more than a 9% increase. If that 44.6% does not include the two other categories, then we're at 52.4% on LTCGs, which is preposterous.

Even the 37% option comes to a total of 45% vs 28% current. That’s a 61% increase. Completely absurd.

and that "other surcharge" (Obamacare tax) is going from 3.8% to 5%

 

[WapPride]

Just had a call with my CPA because I'm selling some stock options in a tender offer. My all-in cap gains rate with LTCG, state (4%) and some other surcharge (3.8%) is right around 28%. So the 44.6% would be significantly more than a 9% increase. If that 44.6% does not include the two other categories, then we're at 52.4% on LTCGs, which is preposterous.

Even the 37% option comes to a total of 45% vs 28% current. That’s a 61% increase. Completely absurd.

Yeah it’s an aggressive proposal, and the 44.6% number does include state and NIIT. The 3.8% tax is a net investment income tax(NIIT), it can be worked around and I’m sure your CPA knows how to do it.

Assuming you qualify under the $1mm/year in income and $400k/year in investment income requirements - that new rate would only apply to each dollar over the $400k rate, assuming I read the proposal correctly. Hitting that metric puts you squarely in the top 1% these taxes are supposed to target that, to quote prime, the “feel the bern” dems want.

It’s all an exercise in futility though since it’ll never pass. There’s no chance the shills in congress would pass such a bill without protections they themselves can use.

 

[WapPride]

An enemy that has long stated it wont stop attacking and killing them until every Jew is dead and not just in Israel either? So you support the murder of ever Jew in the world?

Dynamite drop in, per usual, Rob.

 

[dpic73]

Pretty sure i read I coud keep my current insurance and doctor with Obamacare and there were wmd's in Iraq...

That's a pretty stupid response to a question I asked that I was right about. If you're lost, I'll be happy to point you to the exit.

 

[scotchtiger]

and that "other surcharge" (Obamacare tax) is going from 3.8% to 5%

Cot dammit.

 

[yoshi121374]

In this thread I relize that I'll never have to pay the highest tax rates?!? I'm saddened and happy at the same time I guess?

 

[TigerRagRob]

That's a pretty stupid response to a question I asked that I was right about. If you're lost, I'll be happy to point you to the exit.

Its a response to the point you made that you read something. My point which is over you head is just because you read something doesnt mean its true...

 

[TigerRagRob]

Dynamite drop in, per usual, Rob.

Cant refute the point per usual Wap...

 

[dpic73]

Its a response to the point you made that you read something. My point which is over you head is just because you read something doesnt mean its true...

I asked for verification if what I read was true and they confirmed that it was. Your response was stupid and made no sense in that context, get it?

 

[TigerRagRob]

I asked for verification if what I read was true and they confirmed that it was. Your response was stupid and made no sense in that context, get it?

Gee even if its true it will destroy the economy but since its true its ok with you? They know Trump is winning and they need to go scorched earth and destroy the economy then they will blame Trump and incels like you will lap it up and run with it....Got it...

 

[dpic73]

Gee even if its true it will destroy the economy but since its true its ok with you? They know Trump is winning and they need to go scorched earth and destroy the economy then they will blame Trump and incels like you will lap it up and run with it....Got it...

 

[WapPride]

Cant refute the point per usual Wap...

There wasn’t a point you mook. You asked me an absurd question about wanting every Jew dead, which didn’t warrant a response beyond a snide retort. You’re not a serious person who deserves serious responses.

But if you want a serious response; extrapolating an extreme view from a hardline faction to the entire party in question is something idiots do. Anyone, regardless of their affiliation, that argues for the entire extermination of another people are in the wrong. I could take Netanyahu and Smotrich’s inflammatory comments about Palestinians and claim they’re representative of all Israelis, but I’m not a ****ing moron like you.

 

[TigerRagRob]

There wasn’t a point you mook. You asked me an absurd question about wanting every Jew dead, which didn’t warrant a response beyond a snide retort. You’re not a serious person who deserves serious responses.

But if you want a serious response; extrapolating an extreme view from a hardline faction to the entire party in question is something idiots do. Anyone, regardless of their affiliation, that argues for the entire extermination of another people are in the wrong. I could take Netanyahu and Smotrich’s inflammatory comments about Palestinians and claim they’re representative of all Israelis, but I’m not a ****ing moron like you.

Thats the stated goal for the people of Gaza. They attacked and murdered babies in their crib's. Your calling people out and are supporting Hamas. So I ask since their stated goal is to kill every Jew in the world do you support that? If not stop supporting Hamas. By supporting Hamas you are supporting their stated goals... As for Ukraine lets remember the West supported a coup against the elected pro-Russian gov and replaced it with whats there now. That gov then proceeded to cleanse ethnic Russians and Russia got involved. This history didnt just start in 2014. It goes back way farther back in history. Both Ukraine and Russia have garbage leaders that are both evil. Ive said it before and ill say it again there are no good guys in that conflict. They both are bad. Ukraine was pro-Hitler and sided with him during WW2 as did many Arab's in the middle east. Yet many people support these groups some because they dont know what they are supporting and some because they really support it...

 

[scotchtiger]

Let’s keep it on track guys. This thread is not about Israel. It’s about bullshit taxes and bitter fvcks who want other people to pay for their big government dreams.

 

[TigerRagRob]

Let’s keep it on track guys. This thread is not about Israel. It’s about bullshit taxes and bitter fvcks who want other people to pay for their big government dreams.

Well since our hard earned money is going to fund both I would say its allowed

 

[loveoysters]

No idea, reading the proposal reminds me why i never went into tax law. It sounds like you'd receive a refund each year if your unrealized gains tax ended up higher than your LTCG tax. Our tax law is such a ****ing nightmare it seems like it's just going to make things more difficult.

CPAs everywhere are rejoicing if this passes though since their billables are going to skyrocket.

CPA here, and no I would NOT be rejoicing.

 

[PrimeIsGettingComfortable]

 

[iceheart08]

What is considered “wealthy” by the narrative pushing folks in these situations, is not “wealthy”. $400k/year is not wealthy. LT cap gains are earned by taking risks. At any point, those deals could fall through and a person lose what they have.

I’m all for helping others.. very much so. My wife and I stay aware of who we should help. Our government throwing our money into a black hole of nothing is a totally separate conversation.

400k puts you anong the top 5% of earners worldwide. That's wealthy no matter where you live.

 

[Cocks are Number 1]

400k puts you anong the top 5% of earners worldwide. That's wealthy no matter where you live.

No, it’s really not. A good living, but far from wealthy.

 

[PKPTigers12]

Pretty sure I read this only affects those whose income is $1 million a year or more, no?

And they already pay more tax than those who don’t make 1M+…

 

[scotchtiger]

400k puts you anong the top 5% of earners worldwide. That's wealthy no matter where you live.

No, it’s really not. A good living, but far from wealthy.

Agree with cocks here. Not really close even. And wealthy isn’t just an annual salary - you have to factor in net worth, income stability, etc. A sales bro who hits half a mil one year isn’t all of a sudden “wealthy.” But even beyond that, it takes way more than $400k/yr, even consistently, to be wealthy.

 

[iceheart08]

Obviously, we are applying different definitions to the word wealthy. I would describe yours as insanely narrow and elitist, in the grand scheme of things.

 

[fatpiggy]

Obviously, we are applying different definitions to the word wealthy. I would describe yours as insanely narrow and elitist, in the grand scheme of things.

Wealth is obviously relative, but if you have a family of 4, 5, or 6 people, $400,000 will not make you wealthy any time soon.

I love how democrats always say we are going to "tax the rich" and then in the next sentence go on to say $400,000.

Democrats want a socialist society where they think an elected group of morons (really look at some of the people making decisions. Like AOC, a pure idiot.) can make decisions for your money better than you can.

Flat tax. No system is perfect, but a flat tax is at least fair. Everyone pays the same portion.

 

[scotchtiger]

I love how democrats always say we are going to "tax the rich" and then in the next sentence go on to say $400,000.

Nothing grinds my gears more than Dems talking about Wall Street billionaires not paying their fair share, or Warren Buffett’s secretary paying a higher tax rate than him, then using that rationale to propose tax increases on normal working families making $400K. It’s shamefully disingenuous.

I have no problem with tax increases on people who legitimately aren’t paying their fair share. But it sure as shit isn’t families like mine, yet we are squarely in the crosshairs of dems big government tax dreams.

 

[DW4_2016]

and that "other surcharge" (Obamacare tax) is going from 3.8% to 5%

Not possible. Obamacare was repealed and replaced by the last president.

 

[DW4_2016]

Wealth is obviously relative, but if you have a family of 4, 5, or 6 people, $400,000 will not make you wealthy any time soon.

I love how democrats always say we are going to "tax the rich" and then in the next sentence go on to say $400,000.

Democrats want a socialist society where they think an elected group of morons (really look at some of the people making decisions. Like AOC, a pure idiot.) can make decisions for your money better than you can.

Flat tax. No system is perfect, but a flat tax is at least fair. Everyone pays the same portion.

MTG was a quiz bowl champion and lettering mathlete

 

[TigerRagRob]

lulz

 

[PalmettoTiger1]

but wait, there is more!

In addition to 44.6% capital gains rate, Biden wants a 25% tax on unrealized gains?!????

It just keeps getting better. What an unmitigated disaster this guy is.

Biden is a hollow mummy with George Soros and Chinese controlling him

His mission is to destroy America from the inside so the Chinese can match into America backwards telling the MORONIC BIDEN SUPPORTERS THEY LEAVING AS THE MORONS SUPPORTING BIDEN DON’T HAVE A CLOSED MIND

THEY HAVE NO MIND

 

[PalmettoTiger1]

Nothing grinds my gears more than Dems talking about Wall Street billionaires not paying their fair share, or Warren Buffett’s secretary paying a higher tax rate than him, then using that rationale to propose tax increases on normal working families making $400K. It’s shamefully disingenuous.

I have no problem with tax increases on people who legitimately aren’t paying their fair share. But it sure as shit isn’t families like mine, yet we are squarely in the crosshairs of dems big government tax dreams.

I am going to say that $400,000.00 sounds like a lot of money

But when made by earned income the deductions and taxes today kill that number

My daughter earns way up there and she struggles with all the costs associated with living

MIDDLE CLASS

Once upon a time 100,000.00 was MIDDLE CLASS

Today I would say MIDDLE CLASS IS NOW APPROACHING THE NEED TO MAKE $400,000.00
To be slightly above middle class

That is insane inflation escalation for America

 

[PalmettoTiger1]

I either said it here or another thread, but I still won't vote for Trump. But I will vote for Republicans in Congress so they can stop dogshit legislation like this.

Anyone paying <20% federal effective tax rate who thinks someone else should pay more in taxes needs to take a long, hard look in the mirror.

Dear Scotch Tiger,

I have seen that statement you will never vote for Trump

I view your posts and I believe you to br an open minded sensible pragmatic person who loves America

Would I like a better choice than Biden Vs Trump

Hell Yes

But I will appeal to your reasonable side

It’s like pick the best between the worse

Trump is by far a better choice despite his warts

I would prefer other choices

Unfortunately we are all in the boat that Biden is sinking and despite Trumps antics

HE WILL SAVE THE SHIP AND ALL OF US MISFORTUNATE SAILORS

Vote Trump and you will feel better in 5 years

 

[iceheart08]

I am going to say that $400,000.00 sounds like a lot of money

But when made by earned income the deductions and taxes today kill that number

My daughter earns way up there and she struggles with all the costs associated with living

MIDDLE CLASS

Once upon a time 100,000.00 MIDDLE CLASS

Today I would say MIDDLE CLASS IS NOW APPROACHING THE NEED TO MAKE $400,000.00
To be slightly above middle class

That is insane inflation escalation for America

Middle class is usually defined as 2 or 3x the poverty line. So like like 60-90k/year

 

[loveoysters]

Middle class is usually defined as 2 or 3x the poverty line. So like like 60-90k/year

So where would you fall? middle or upper class then?

 

[PalmettoTiger1]

No, it’s really not. A good living, but far from wealthy.

$ 400,000.00 used to be really big

Now it is the upper end of middle class because taxes and inflation is destroying that once high number


I would agree that your numbers are probably correct based on past experiences and specific areas of the country

Making $ 90,000.00 in todays world with wife husband 3 children medical costs insurance house buying and maintenance costs make $100,000.00 laughable as a middle class income

closer to $ 175, 000.00 to really consider that being safe

However if you compare Columbia to Charleston say Mt Pleasant then middle class rises in Charleston in costs and Columbia is more affordable

I recall a funny situation when a computer programmer friend of mine accepted a job in DC with the Pentagon paying like $110,000 some 7 years ago. Said that beat his SPAWAR SALARY OF $ 95,000.00

We had a huge laugh at his expense when we pulled up the cost of living comparisons

Move to NYC or Kiawah

You will understand immediately when you pay your monthly bills or go to the grocery store

 

[iceheart08]

So where would you fall? middle or upper class then?

I make somewhere between this and the 400k these guys seem to think makes them middle class. I consider myself and my family wealthy, and we live in a major city.

 

[PrimeIsGettingComfortable]

I make somewhere between this and the 400k these guys seem to think makes them middle class. I consider myself and my family wealthy, and we live in a major city.

$400k is in the top 1.8%tile nationally. In a state like South Carolina, it’s probably in the top 0.25%tile.

Sure, living in a tier 1 city and sendingn your kids to $50k/yr school might mean you need to have a tighter budget, but that is a good living in every city.

And anyone who disagrees that $400k isn’t a very good living should then vote democrat because the issue would only be solved by a larger inheritance tax or a bigger capital gains tax rate.

 

[scotchtiger]

$400k is in the top 1.8%tile nationally. In a state like South Carolina, it’s probably in the top 0.25%tile.

Sure, living in a tier 1 city and sendingn your kids to $50k/yr school might mean you need to have a tighter budget, but that is a good living in every city.

And anyone who disagrees that $400k isn’t a very good living should then vote democrat because the issue would only be solved by a larger inheritance tax or a bigger capital gains tax rate.

There's a big difference between "good living" and "wealthy."