Good point. They aren't adding any value to the economy, but they aren't gambling like a day trader. I've always been a buy and hold guy unless there is some compelling reason to trade or the stock is called. That's why almost all my income is taxed at the 20%.
here comes the tax increase number one 43.4 Percent on capital gains
- Thread starter Bulletbob
- Start date
Good point. They aren't adding any value to the economy, but they aren't gambling like a day trader. I've always been a buy and hold guy unless there is some compelling reason to trade or the stock is called. That's why almost all my income is taxed at the 20%.
Good luck with this attempt at education. I tried to explain preferred stocks to my dog, but she just looked at me and wagged her tail.
That made me laugh. A shares, B shares. I don't care as long as I get a treat.
no and this will affect how a lot of people invest
It may or it may not. I would suggest it won't affect how they invest since you only pay capital gains taxes when you sell the investment.
yes I know what capitol gains are . and the people who earn big dollars from them are investors who often reinvest the money create jobs etc.
Myth, Lafer curve, the last twenty years prove it bogus
It's worse than that. They don't reinvest to 'create jobs'. They are just buying and selling pieces of paper. That creates exactly zero jobs.
It has more of an impact on how long things are held. But not much of an impact. The market reaction was way overblown. Half of the losses have already been recouped, at least in the Dow.
"Capitol" gains would be when one party gains Congressional seats in an election.
Capital gains are when people sell an asset for more than they paid for it. You clearly don't know how investment works or how jobs are created. Let me give you an example of investors earning big dollars and not a single job was created. In the last couple of months more than $3 billion were earned by investors buying and selling Gamestop. Gamestop did not earn a penny of that money. Gamestop did not create a single job with that $3 billion.
Much of investing doesn't really create jobs. Rather it is holding an asset that creates jobs. If I sell my Microsoft stock and buy Apple I haven't created any jobs. Microsoft and Apple could care less who owns their stock since they are going to conduct their business the same whether you or I or anyone else owns the stock.
Correct. Once the initial offering is made, the company issuing the stock has gotten their money. That stock will be bought and sold hundreds of times without a single impact to the issuer. The other area where capital gains comes into play is dividend income (which is near and dear to my heart). I can hold my stocks for as long as I want, but after a year, the dividends I receive are considered long term capital gains and taxed at the appropriate rate (in my case, zero on the first 40K or so, 15% on the next 400K or so and then 20% for the rest). The only thing this proposal changes is that the rate goes to 39 percent on income that exceeds 1 million dollars.
Personally, I've had over a million in capital gains only once, and that was a unique set of circumstances (a large holding called at a price that was way higher than I paid for it).
I hope you don't starve when the rate jumps to 39% for your gains that exceed $1 million. At least Bulletbob is looking out for you welfare and making sure you don't have to live on the street or be forced to eat dog food to survive.
** learned something new - I wasn't aware that qualified dividends were taxed at Cap gains rate. (I don't have to worry about that at the moment with majority of my investments in tax free accounts.)
What increases hiring is a growth in demand. One way that is achieved by the stimulus concentrated in the people not wealthy and corporations. Trump moved a couple of trillion dollars to the ultra-rich. They bought up outstanding stock that they gave to execs in the form of bonuses. Trump increased the wealth gap substantially.
Althea
Althea told me...
No they don't. Those phantom investments would be a tax write off, so you're way off base.
Yep, my portfolio now is mostly preferred stocks, they generally aren't subject to the wild swings of common stock, and I've been successful at getting in when the rate of return is very high and just riding that as long as I can. I bought a really large volume of a preferred bank stock shortly after the 2008 crash, it eventually tripled in value and was paying on a regular basis. When it got called, I had huge gain, and I had to write a pretty big check. It would have been bigger under this proposal, but I would have bit the bullet and lived with it. I should not be the target of a big tax cut.
Althea
Althea told me...
These idiots all seem to think that giving more money to corporations will automatically create jobs. The opposite is true. Without demand, there is no job creation.
All money should be given to the lower/middle class, where they will immediately give it to the wealthy via purchases.
It worked that way for centuries.
Althea
Althea told me...
Be patient with BBob. He's just repeating something he heard on Fox.
Althea
Althea told me...
Let's not forget that hedge fund managers' salaries are improperly taxed as cap gains because of carried interest. You know...what trump promised to end on his first week in office.
Althea
Althea told me...
It's not what you make. It's how you spend it. People like us generate demand.
That's probably the biggest abuse of cap gains. It's ludicrous.