Boo.
this post was submitted on 05 Sep 2024
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politics
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This seems misleading. 28% is less than Biden’s 39.6% tax proposal for 2025, but still greater than the 20% tax we have now. More importantly, this proposal would just be a request - Congress can make whatever amendments they want.
I could be wrong and would accept evidence to the contrary, but I don’t think Congress was going to pass Biden’s 40% proposal for FY25, anyway, in which case 28% would be a compromise in the right direction.
I think she’s making the same mistake Obama made with healthcare: coming from a background as senators under Republican presidents, they gravitate toward proposals that would likely have passed as-is in the Congresses they served in; but when it’s a Democratic president making the proposal, it needs to be more robust because Congress will water it down as a matter of principle no matter how moderate it is to start with.
She is already caving to special interests
I think it'd be great if the tax rate on gains (when selling stock) was based on the entire value of all stocks a person has.
So if Elon sell some stock (a dollar or a billion), his gains tax rate is higher than someone selling stock whose entire stock value is less.
It'd also be nice if retirement accounts (401k, Ira) were excluded from this.
This is the right idea imo. Tax wealth, not income.
So I have a stupid question: Is the current 20% tax actually enforced against actually rich people?
Mostly yes.
You get people selling off companies or several depreciated rental properties, and they get hit with the tax and can't get out of it.
There are some circumstances that they can manipulate though. When the stock market crashed in 2008, people sold off at enormous realized losses, sat on the cash for thirty days to avoid the wash rule, and bought right back in at the same low prices.
That created years worth of carried over losses that enabled them to recognize capital gains at zero tax.
It's a reasonably common strategy called loss harvesting.
Certain flavors of stock options appear to be tax free at time of sale, but this is because the initial grant was deemed W-2 wages and was taxed when it was issued at ordinary income rates.
Yes, but no. Yes if you sell your asset at a gain you pay taxes. However, if you don’t realize your gain and instead use your asset as a collateral in a loan, you don’t pay taxes. That’s why the rich pay no taxes whatsoever. For instance, Bezos has 2 bln in outstanding loans. As a collateral he uses his 200 bln share in Amazon. He never pays taxes.
The proposal by Harris would fix this and tax gains prior to realization. If she succeeds that is a much bigger deal than whether the rate is 20,30 or 40 percent.
I think that tax would actually end up being 16%.
Never underestimate these Democrats capability to bargain with imaginary opponents.
Damn they'll be debating on my birthday? Now that's a hell of a present.
Harris unveils plan for 28% capital gains tax, softening Biden's proposal for 40% rate
Increasing the capital gains tax will squeeze out middle class a little bit more, but the richest people borrow against their assets instead of selling them. Interest is paid to banks, federal budget gets nothing.
But you won't hear neither Harris nor Biden talking about fixing this loophole
It’s not a loophole. It’s how it was purposefully designed.
Wait
I thought Biden was the worst person in the world and hated unions and working people and loved the rich and was so much a tool of capital he was indistinguishable from the Republicans they were collaborating to strengthen the corporate oligarchy strangling our country and that’s why we have to vote for Cornel West etc etc
Now that he can’t actually be elected, we need to be upset that Kamala Harris only wants to increase the capital gains tax by 40% and not the 100% that Biden was going to do
Do I have that right?
Capital Gains tax will impact the middle class more than the rich. Poor to middle class people sell stocks, rich people take loans out against their assets, which isn’t taxed at nearly the same rate, interest is paid to banks, not the government, and no assets are ever sold.