The 75% figure is misleading (no doubt intentionally). If the current rate is 15% and the new rate is 28% (Obama proposal according to PolitiFact) then that is an increase of (28-15/15) = 86%. Do the same for 24% and you get a 60% increase. 75% must be an average of the two (?) The title of this thread didnt say the new capital gains rate would be 75%, it said that it would be raised 75%....
Philosophically I agree there's an inequity. However futures trading is zero sum. At a 40% marginal that's a nice "rake" from guy's who aren't really earning but instead just winning some bets. There's an intrinsic unfairness if the tax code keeps carry over losses at 3k per year and then treats trading like ordinary income. It's like the G's version of heads you lose tails I win.
I think you can get a pretty clear picture of whether or not the posters in this thread actually have ANY money. It's very obvious.
Clacy, I don't know why you think it's 'obvious' who has money and who doesn't based on their position regarding taxes. I suspect that you are either a young person who thinks that everybody is ONLY looking out for thier own interest regardless of fairness or other morals. Or, you are an older person who never learned that we are a society and not just a group of selfish individuals. Remember, Bill Gates and Warren Buffet, by far the richest of all of us are campaining hard to retain the inheritance tax: not everybody thinks only of themselves. To another poster: yes the $3,000 loss limit restriction should also be removed as: a loss is a loss is a loss and all losses should be treated equally.
Such a move would hurt the middle class, it would run them out of the market, or eat up their nest eggs. The Accredited Investors are already bailing out of the US STOCK MARKET, and finding PRIVATE EQUITY deals far more attractive. They like the tax write offs agains ordinary income, they like the risk, and they like the possible returns on these Projects. They rather write off X % against ordinary income than deal with the Capital Gains tax against passive gains. If the Socialist Party wins and raises Capital Gain taxes, PRIVATE EQUITY and PRIVATE PLACEMENTS (non-publical companies) will be the best place to be for making money for both Investors and PRIVATE EQUITY BROKERS persa.
No. If you have not figured out by now that the best way to a better lifestyle for ALL Americans is through lower taxes and more importantly much lower government control and spending, than it is you who is ignorant.
Taxing wages and taxing capital are two entirely different things. When you tax capital in the form of a tax on gains, you limit the flow of capital, which slows ecominic growth. People will just keep their money in the current investment in order to avoid a tax. Besides, that money was already taxed when it was earned. People may not change their behavious much when it comes to taxes on wages, but they sure as hell do when it comes a CG tax. Look at past history. If we had someone that truly understood capital markets they would be proposing that we eliminate the CG tax entirely. But that makes too much sense.
First of all: the correct word is 'then', not 'than'. If lower taxes and gov't spending are the keys to a 'better lifestyle' then the 3rd world would be living in luxury. The USA has the lowest tax rate of industrialized countries and we do NOT have the highest standard of living compared to other such nations. There is a point where taxes are excessive and deter economic developement but we are a long way from that. What do you think the gov't does with the taxes it collects: put it in a matress. No, they spend it. Sometimes foolishly, sometimes wisely: in either event the money gets circulated. Stop peddling Kudlow-stupidity as economic fact. A person that has money to invest is not going to forgo investing simply because he only gets to keep 60% of the profits rather than 80%.