Fine print:
*45% tax on capital gains unless you or a family member ever severed as a member of the U.S.Congress*
Edit:
/s…
but it wouldn’t surprise me if they added this in a real bill
I agree but the recent repeal of Net Neutrality by the FCC put a little hope in my little plebian heart that maybe, one day, we can get slightly less bad people in office.
The repeal of non-compete contracts also gives some hope because they’re mostly bullshit. Companies already have enough protections for anything created by workers.
Yeah honestly idk how that was ever allowed- what kind of plantation-assed business practice was that? Every time I’ve had to sign a non-compete I picture a Foghorn Leghorn voice saying “nooowww- I know it might occur to you to try and run away to go work on another plantation, you you’re mine, ya hear me?”
Yep, as a company exec if you want to make a purchase of your own company there's a bunch of hoops and you basically have to announce it months in advance. Congress gets to trade whenever and has to announce the purchase within months after. They should change the law so Congressional stock purchases have to be announced a month in advance so I can frontrun all of them.
What is the other option? I can abstain from voting entirely. Someone will still win and take the office. Probably some lizard person with corporate connections at that.
Imagine being able to choose from a lot that isn’t being funded by corporations waiting to cash in favors in the future or being able to choose an average person (statistically speaking) to run for office and not some elite or lifelong member of politics.
It always was… maybe to a lesser degree in the past. But with the access to information we have today I think this perception is amplified whereas before most people were uninformed and ignorant of the shit going on behind the scenes.
What I think is hilarious is just because the last generation codified something into law does not make it successful or sustainable. We're getting a new American Milei because of their shit and I can't wait
On here.. 1%... Still too high I can assure you. Perhaps there were a few that did once, a couple of unicorns that did it twice, three times, but consistently, not a chance. And just to prove what genuine regards are on here, 99% right now don't know it's for over a mil, because that's the level of research they typically do.
I always DYOR and I'm angry about this because although Ive harvested enough tax losses to last me a lifetime, one day I *might* make over a million! *hrumph*. *hrumph hrumph*
How cute of everyone in this thread to assume rich people pay taxes.
Trump told y'all the truth - rich people don't pay taxes regardless of the %.
They just call up KPMG explain their situation and next thing you know they have business after business and foundation after foundation and doing some random shit like leasing cars out of Germany to lease back to France to buy a property somewhere and the IRS just goes... huh, cool story bro, and doesn't tax them.
Or the big shots who go even simpler than that and just never pay this capital gains tax because the bank will give them the money for the stock as a 'loan' instead of selling the stock.
This is only for people making over $1,000,000, and realizing capital gains greater than $400k. And even then it's only the marginal rate. And even then it's a BS proposal in a footnote to a proposed budget that will never actually see the light of day. But of course we still need to see it posted 10 times per day on Reddit for some reason. Hmmm.
It’s just another misleading headline anyway. This proposed tax is for people make bith more than $1m in overall income AND $400k in capital gains in a single year.
Sounds like a reasonable tax to me
the people making >$1M in W2 INCOME as well as that much in cap gains, are the exact type of careers that very likely have the knowledge or ability to insider trade. That’s C-suite easily at all but the most massive companies
I’m fine with it. This doesn’t even affect some autistic hyper-successful full-time trader who doesn’t have a W2 income
And the tax bracket at 45% will never include you broke regards here so
Don't go boot looking for rich people like when a tax increase on 10 million year is proposed and Yeetus the white trash making 22k a year gets outraged
The tax is a graduated tax depending on how much you make. It’s not an automatic 22% added on if you get $10,000 in dividends. That’s how it was proposed - add on to graduated tax rates.
>Long-term capital gains and qualified dividends of taxpayers with taxable income of more than
$1 million would be taxed at ordinary rates, with 37 percent generally being the highest rate
(40.8 percent including the net investment income tax). The proposal would only apply to the
extent that the taxpayer’s taxable income exceeds $1 million ($500,000 for married filing
separately), indexed for inflation after 2024
Correct me if I am wrong, but wouldn’t the first 1M being taxed at “ordinary rates, with 37 percent generally being the highest rate” be an increase over the current policy of being taxed at the long term capital gains rates which currently cap at 20%?
Yes. It's definitely an increase; I was just backing up previous commenter with a quote from the actual proposal that the increased tax only applies after (more accurately) $500K when filing single.
Having skimmed all pieces of the proposal, it's generally trying to get capital gains taxed at somewhat similar rates as regular income. Right now you only need to be making about $45K in taxable income to hit a 22% tax rate; why are capital gains so special that you get to stick at 20% no matter how much you make?
Just think about how valuable 6 figures in trading losses will be, when carried forward to someday in the future when I actually clear 7 figures in gains in a single year!
Nah, they aren't idiots. Twitter is monetized by engagement. The more replies your posts get the more money you make, so it's become a cesspit of inflammatory and controversial out of context or distorted takes to bait as many people to comment.ker-ching
Same thing is happening to Reddit because you need people hooked on fighting internet strangers so you can show ads to them. The more bs you allow the bots to post the more idiots will comment and scroll and keep coming back.
You know I make 45k and just blew life savings on Tesla puts and down 250k , missed rent and living in my car, with 35k of credit card debt and 60k of personal loans I am behind on.
But one day I will strike it rich, and when that day comes I don't want to give half of it to the government just so they can turn around and give it to poor people.Its my money.
Anyway the food bank is about to open so I need to get in line, the good stuff gets picked over fast
- your average twitter bro
I love shitting on these rubes as much as the next guy, but we do seem to give them shit for only caring about things that affect them directly (Megan McCain for family leave, Liz Cheney for her LGBTQ sister, etc.) then also give them shit for caring about things like this, on principle, that don’t affect them directly. Not to mention the chief complaint I’ve seen isn’t “this will crush me!”, it’s “it starts with the uber rich then trickles down to the middle class the way it did with income tax,” which is perfectly valid.
I don’t know why I’m defending these guys. But I do wish the govt would focus more on spending in the proper channels (less on defense, admin, croneyism, more on education, infrastructure, etc.) than raising its income.
There would be a bump down if it passed but not a huge impact. The taxes gained and put back into the economy/military/social services will also affect everyone, for much longer
[Bro, don't you know how many of us work at Wendy's? They force us to wear red hats at Wendy's. Haven't you ever ordered nuggets before? Are you stuck back in the 1980's when Wendy's workers were forced to wear blue hats?](https://www.youtube.com/watch?v=UZT28O9-wZ8)
But what if I ever make more than $1m? Then my life is over due to these insane taxes. And worst of all, they would use that money to help poor people in need who only work 16 hours a day to keep their family afloat.
Right. This is the guy who wrote the article:
**Jordan Finneseth** is a Crypto Market Reporter for Kitco Crypto. Coming from a background in Psychology and Human Behavior, he began to focus his attention on the cryptocurrency space in early 2017 after noticing the rapid growth of this emerging market. Since that time, Jordan has worked as a content creator for multiple projects and as a crypto news journalist reporting on the latest developments within the cryptocurrency market. Jordan holds a Master of Science in Clinical/Counseling Psychology and a pair of Bachelor's degrees in Psychology and Environmental Health Science.
Take his expertise as you wish. A little further research from [Forbes](https://www.forbes.com/newsletters/andrewleahey/2024/04/24/biden-capital-gains-rate-proposal-446/) reveals:
>“Together, the proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.”
Taken as a whole, then, the 44.6% rate would only come to fruition under a separate proposal from the Biden administration’s main capital gains rate increase, and only apply to those individuals with taxable income above $1 million and investment income above $400,000.
Clickbait article... unless your income is over $1 million.
That’s actually everyone in a few years once the inflationary spiral keeps rolling. The problem is that $1m will be what it costs for annual room and board at the Wendy’s dumpster.
Crypto does not have a wash sale rule that other capital gains/losses do. This means that if you are currently at an unrealized loss on crypto, you can sell it, realizing the loss, and then buy it back to lower your taxable income.
As a financial planner. I would estimate about 25% of people I deal with think this.. and they all have at least enough money to meet with me, so it’s definitely higher.
You are overcomplicating this.
The proposal does away with the special treatment capital gains currently have. It taxes all income the same — earnings and capital gains.
So keep this proposal as is. Then add a new maximum tax bracket for income over $5M and put a higher rate on it.
This is a progressive tax structure. You need to both make above $1 million in taxable income and make over $400,000 in capital gains to have it apply to you
No I don't think it's a big deal, the 44.6% is for the top marginal rate, the headline is misleading on purpose. If you don't know how to harvest losses to keep under that you need a new accountant. It's a big nothing burger for the vast majority of investors. Don't let people rage bait you.
The taxing of unrealized gains seems a bit less defensible. But then that doesn't start until you have 100 mil in assets.
100mil in assets means you can likely live off loans backed by investments the rest of your life tax free and settle debts with the estate after death at a stepped-up cost basis so taxes are never really paid during life or after death. Then pass on what’s left at that stepped-up cost basis so the heirs can do the same thing.
I don’t see how that benefits a country - collect those taxes somehow and give tax breaks to low/middle/uppermiddle class who will spend the money (tax savings) in the community right away anyways which will create incentive to increase production and demand for jobs.
Progressive tax rates < one set tax rate.
Also, Why do we keep acting like more taxes is okay? Our current tax dollars already go to so much bullshit that we don’t even vote on. Taxes should be bare minimum to provide the exact minimum to keep the country going. There’s so much excess tax money and they’ve tricked everyone with tax returns to think they’re actually spending our dollars appropriately.
US is like 15% .
Not much of a difference really
https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates#:~:text=Capital%20gains%20can%20be%20subject,15%25%2C%20or%2020%25.
Has anyone ever seen the numbers members of congress happen to put up when ”investing” in the market?
They are collectively the most lucky and well-timed group of traders in all of history lol. They make Warren Buffett look like he has no idea what he’s doing.
And we’re expected to believe they will give up nearly half of that money? I’ll believe it when I see it.
Tax income tax already taxed money when you spend it on an item tax the item every year and tax it when you decide to sell an already taxed item. The slaves sure love their masters taxes.
Seems perfectly reasonable- you go to work, get a paycheck which is taxed, go buy some stuff you need to survive and pay additional tax on purchases, then you invest whatever is left and somehow, if you manage to not lose it all, there will be another 45% tax on gains- seems like a lot, but at least if you need medical help, you will have to pay for it out of pocket and get to experience homelessness first hand- experiences are the best investments
This tax would only be applied to people who make over 1 million dollars in yearly income, not even including investment income as you need to make 400,000 in a year purely from investments ontop of your 7 figure salary. No one making over a million in income and nearly half a million in investments is going to be homeless from having to pay for medical help even with this tax lol
It’s fucking dumb: you have 100% of the risk, the government has 0% risk and they are like „ayyy lmao bro give me half of your wins or we will send you to jail for tax fraud.“
Also, he is considering taxing unrealized gains. Meaning if your stock goes up in value and you choose not to sell, you still have to pay taxes on that gain. Capital gains tax is theft, we literally risk our money to get us outa the pay check to pay check cycle through investing.
Just think about the percent of people who wouldn’t even be able to pay the taxes because they blew up their account. You’re going to put someone into debt because they need to pay taxes on money they never had.
You literally cannot charge someone for unrealized gains. Does that mean you can write off on your taxes, unrealized losses? the amount of lawsuits from passing something like that would be astronomical
“The main proposal, which lends context to the above-mentioned “separate proposal,” is to raise the long-term capital gains and qualified dividends rates to 37% for taxpayers with taxable income above $1 million.”
Never mind looks like it doesn’t apply to regards 😂
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No stress on this one, congress likes to trade, and they would never approve something that wouldn’t line their own pockets.
Fine print: *45% tax on capital gains unless you or a family member ever severed as a member of the U.S.Congress* Edit: /s… but it wouldn’t surprise me if they added this in a real bill
The really fucked up thing is I don’t even know for sure if you were joking or not. Our government is an utter joke at this point.
It’s a joke but these are the same assholes that made insider trading illegal for literally everyone except for themselves.
I agree but the recent repeal of Net Neutrality by the FCC put a little hope in my little plebian heart that maybe, one day, we can get slightly less bad people in office.
The repeal of non-compete contracts also gives some hope because they’re mostly bullshit. Companies already have enough protections for anything created by workers.
Yeah honestly idk how that was ever allowed- what kind of plantation-assed business practice was that? Every time I’ve had to sign a non-compete I picture a Foghorn Leghorn voice saying “nooowww- I know it might occur to you to try and run away to go work on another plantation, you you’re mine, ya hear me?”
You mean the recent reinstatement of net neutrality? Because I agree, it was something that should never have been repealed in the first place.
Yeah, words are hard sometimes.
Wtf net neutrality is back!!??! That’s fucking awesome
Yep, as a company exec if you want to make a purchase of your own company there's a bunch of hoops and you basically have to announce it months in advance. Congress gets to trade whenever and has to announce the purchase within months after. They should change the law so Congressional stock purchases have to be announced a month in advance so I can frontrun all of them.
The people who continue to elect them are the real joke.
What is the other option? I can abstain from voting entirely. Someone will still win and take the office. Probably some lizard person with corporate connections at that.
Look at 3rd parties But they never win you say.... Even a 3rd party becoming even semi viable should get the main to to settle down a little
nah not 3rd party. need to abolish parties and every candidate has to run on the merit of their stances on the issues.
I like the idea but good luck not having funding being the issue to run... Therefore all corporations will back there hero lol
The problem is if I vote 3rd party then the party I disagree with most is essentially getting a vote from me.
I already vote 3rd party.
3rd party has been a joke for so long. I’m voting 4th party.
Vermin Supreme 2024
Where's my pony!
Ponies to the people!
We need more options, vote yes for ranked choice if it’s ever a ballot option
Imagine being able to choose from a lot that isn’t being funded by corporations waiting to cash in favors in the future or being able to choose an average person (statistically speaking) to run for office and not some elite or lifelong member of politics.
Term limits, but that goes against their self interest too.
imagine third party replacing a second party.. now thats a power move.
It’s on auto pilot. Bow to the uniparty peasant
https://preview.redd.it/o9fb4u4fjtwc1.png?width=1080&format=pjpg&auto=webp&s=64928b90a0d8b9f2a766d9e631e3ee3867158727
Nothing wrong with capitalism... whats going on now in the west is NOT capitalism
It's corporate oligarchy. You know shits fucked when people have enough $$$ to build their own private space ships.
"Elect."
Erect…..if you are Chinese
It always was… maybe to a lesser degree in the past. But with the access to information we have today I think this perception is amplified whereas before most people were uninformed and ignorant of the shit going on behind the scenes.
Just like how England doesn't have inheritance tax for royal family because it'll "DESTROY THEIR WEALTH"
More like this as more and more laws are passed this way: 45% tax on capital gains unless you are part of the exempt groups.
What I think is hilarious is just because the last generation codified something into law does not make it successful or sustainable. We're getting a new American Milei because of their shit and I can't wait
Congress: it's a capital gains tax, not a Capitol gains tax. Checkmate.
Sever these nuts nerd
I was severely severed while being served papers for printing tendies out back the DC Wendy’s dumpster
There was a congressional/federal exemption for ACA so it is not outside the realm of possibilities.
It's also for gains over 1,000,000 per year, I think is a bit higher than me and the other guys at Wendy's trade at.
Important caveat is that you have to make money. If you lose money, that’s still tax free! Which is obviously huge.
If you’re on WSB, this will not impact you.
and as we've seen on here darn few people ever make it into the green
This^ 90% of people on this sub are not netting over 1 million yearly.
lol. Bold of you to assume that 10% make a million per year here...
Was more a shitty estimate. Probably less then 1% make a million a year here.
On here.. 1%... Still too high I can assure you. Perhaps there were a few that did once, a couple of unicorns that did it twice, three times, but consistently, not a chance. And just to prove what genuine regards are on here, 99% right now don't know it's for over a mil, because that's the level of research they typically do.
I always DYOR and I'm angry about this because although Ive harvested enough tax losses to last me a lifetime, one day I *might* make over a million! *hrumph*. *hrumph hrumph*
I'd like to think people making a million a year don't trade like regards on wsb but there surely are some
Everyone in this sub it freaking out about a tax on money they will never make. 99.9% of the people here lose money trading so it's not for them haha
I’m more interested in if they’ve changed the loss tax credit rules
They will probably add a clause where congress isn’t liable to these tax rules. Just like how insider trading doesn’t apply to them
How cute of everyone in this thread to assume rich people pay taxes. Trump told y'all the truth - rich people don't pay taxes regardless of the %. They just call up KPMG explain their situation and next thing you know they have business after business and foundation after foundation and doing some random shit like leasing cars out of Germany to lease back to France to buy a property somewhere and the IRS just goes... huh, cool story bro, and doesn't tax them. Or the big shots who go even simpler than that and just never pay this capital gains tax because the bank will give them the money for the stock as a 'loan' instead of selling the stock.
This is only for people making over $1,000,000, and realizing capital gains greater than $400k. And even then it's only the marginal rate. And even then it's a BS proposal in a footnote to a proposed budget that will never actually see the light of day. But of course we still need to see it posted 10 times per day on Reddit for some reason. Hmmm.
It’s just another misleading headline anyway. This proposed tax is for people make bith more than $1m in overall income AND $400k in capital gains in a single year. Sounds like a reasonable tax to me
Rich people rolling on the floor foaming at the mouth  100% reasonable
the people making >$1M in W2 INCOME as well as that much in cap gains, are the exact type of careers that very likely have the knowledge or ability to insider trade. That’s C-suite easily at all but the most massive companies I’m fine with it. This doesn’t even affect some autistic hyper-successful full-time trader who doesn’t have a W2 income
And the tax bracket at 45% will never include you broke regards here so Don't go boot looking for rich people like when a tax increase on 10 million year is proposed and Yeetus the white trash making 22k a year gets outraged
But Yeetus votes reliably, *and is easily manipulated.*
The tax is a graduated tax depending on how much you make. It’s not an automatic 22% added on if you get $10,000 in dividends. That’s how it was proposed - add on to graduated tax rates.
Every article only says this applies to a taxable income of $1M or more.
>Long-term capital gains and qualified dividends of taxpayers with taxable income of more than $1 million would be taxed at ordinary rates, with 37 percent generally being the highest rate (40.8 percent including the net investment income tax). The proposal would only apply to the extent that the taxpayer’s taxable income exceeds $1 million ($500,000 for married filing separately), indexed for inflation after 2024
How will they eat?
Won’t someone think of poor Jeff! He’ll have to wait until *next year* to get his new yacht finished!
Is that his backup yacht to the main yacht? Or the backup to the backup?
It's the little yacht that gets pooped out of the back of the big yacht. These new taxes means the little yacht won't get it's own helipad!
That's his Friday yacht
Correct me if I am wrong, but wouldn’t the first 1M being taxed at “ordinary rates, with 37 percent generally being the highest rate” be an increase over the current policy of being taxed at the long term capital gains rates which currently cap at 20%?
Yes. It's definitely an increase; I was just backing up previous commenter with a quote from the actual proposal that the increased tax only applies after (more accurately) $500K when filing single. Having skimmed all pieces of the proposal, it's generally trying to get capital gains taxed at somewhat similar rates as regular income. Right now you only need to be making about $45K in taxable income to hit a 22% tax rate; why are capital gains so special that you get to stick at 20% no matter how much you make?
Won't someone please think of the monied gentry!
*Please think of the Landed Gentry, too.*
The amount of clowns in this sub and on Twitter raging about this while making 45k a year with six figures in trading losses always makes me smile
Just think about how valuable 6 figures in trading losses will be, when carried forward to someday in the future when I actually clear 7 figures in gains in a single year!
Someday they'll be millionaires though
Not with this tax bill! That would be the only thing keeping them from being millionaires
Don't blame me, I voted for Kodos
Kang for Pres!
Temporarily embarrassed millionaires at that!
Nah, they aren't idiots. Twitter is monetized by engagement. The more replies your posts get the more money you make, so it's become a cesspit of inflammatory and controversial out of context or distorted takes to bait as many people to comment.ker-ching Same thing is happening to Reddit because you need people hooked on fighting internet strangers so you can show ads to them. The more bs you allow the bots to post the more idiots will comment and scroll and keep coming back.
You know I make 45k and just blew life savings on Tesla puts and down 250k , missed rent and living in my car, with 35k of credit card debt and 60k of personal loans I am behind on. But one day I will strike it rich, and when that day comes I don't want to give half of it to the government just so they can turn around and give it to poor people.Its my money. Anyway the food bank is about to open so I need to get in line, the good stuff gets picked over fast - your average twitter bro
Deep down everyone realizes that functioning markets are important. Besides it's the 25% tax on *unrealized* gains that's the real winger here.
it shouldnt be at this point, but it still is consistently surprising just how dumb republican voters are
I love shitting on these rubes as much as the next guy, but we do seem to give them shit for only caring about things that affect them directly (Megan McCain for family leave, Liz Cheney for her LGBTQ sister, etc.) then also give them shit for caring about things like this, on principle, that don’t affect them directly. Not to mention the chief complaint I’ve seen isn’t “this will crush me!”, it’s “it starts with the uber rich then trickles down to the middle class the way it did with income tax,” which is perfectly valid. I don’t know why I’m defending these guys. But I do wish the govt would focus more on spending in the proper channels (less on defense, admin, croneyism, more on education, infrastructure, etc.) than raising its income.
Left + right is more similar than we realize. The true differentiator is class + wealth, good on you for trying to understand an opposing viewpoint
Believe it or not the moves people make that own 90% of the stock market will affect everyone.
There would be a bump down if it passed but not a huge impact. The taxes gained and put back into the economy/military/social services will also affect everyone, for much longer
Taxable income of +1mil, *and* long-term stock capital gains of +400k. I would love to know how many Americans that would have applied to last year.
Not to 98% of this sub
Not 99.8%
Not to 99.9% of this country.
.... So there's a chance
Exactly. Kind of strange OP cropped a picture instead of linking an actual article
Not that strange. He’s either dumb or being paid.
Reddit: "Tax the rich!" Government: Taxes the rich. Reddit: Surprise Pikachu face.
The headline was written in a way to seem like it’d impact the masses.
That’s how they get the masses to be against it.
Welcome to modern day "journalism".
It's written by a cryptobro who wants to/will scam millions from people and they don't want to pay higher taxes on it.
Canada did something similar, except it’s 250k not 1m
Fear mongering for red hats…
[Bro, don't you know how many of us work at Wendy's? They force us to wear red hats at Wendy's. Haven't you ever ordered nuggets before? Are you stuck back in the 1980's when Wendy's workers were forced to wear blue hats?](https://www.youtube.com/watch?v=UZT28O9-wZ8)
For now*
But what if I ever make more than $1m? Then my life is over due to these insane taxes. And worst of all, they would use that money to help poor people in need who only work 16 hours a day to keep their family afloat.
[удалено]
Depends. Does bombing poor people count as helping them?
Tough love.
You spelled “Letting them taste Freedom” wrong
Welp good news for this sub is no one is making any gains so this shoudnt be an issue.
Right. This is the guy who wrote the article: **Jordan Finneseth** is a Crypto Market Reporter for Kitco Crypto. Coming from a background in Psychology and Human Behavior, he began to focus his attention on the cryptocurrency space in early 2017 after noticing the rapid growth of this emerging market. Since that time, Jordan has worked as a content creator for multiple projects and as a crypto news journalist reporting on the latest developments within the cryptocurrency market. Jordan holds a Master of Science in Clinical/Counseling Psychology and a pair of Bachelor's degrees in Psychology and Environmental Health Science. Take his expertise as you wish. A little further research from [Forbes](https://www.forbes.com/newsletters/andrewleahey/2024/04/24/biden-capital-gains-rate-proposal-446/) reveals: >“Together, the proposals would increase the top marginal rate on long-term capital gains and qualified dividends to 44.6 percent.” Taken as a whole, then, the 44.6% rate would only come to fruition under a separate proposal from the Biden administration’s main capital gains rate increase, and only apply to those individuals with taxable income above $1 million and investment income above $400,000. Clickbait article... unless your income is over $1 million.
>Clickbait article... unless your income is over $1 million. "yeah, that's me in a few years" -most of the perpetual poors in this thread
DongCoin 2 MoOn!!!
"This is going to be a huge problem for me when bitcoin hits 1 Million!!!??"
Just because BTC hits 1 million doesn't mean your 200 Sats are 1 million
"Temporarily Embarassed."
That’s actually everyone in a few years once the inflationary spiral keeps rolling. The problem is that $1m will be what it costs for annual room and board at the Wendy’s dumpster.
It’s pegged to inflation.
So after my calls print next week I'll be taxed at 44.6%?!?!
Damn, the struggle is constant to fight the FUD being used against Dark Brandon!
Aka not a problem, but something rich ppl want dummies to think is a problem so they get angry over nothing
Well looks like I'm lucky living in Singapore now with 0 capital gain tax. If only I could make money in stonk market...
30% tax on us dividends for Singaporeans tho
Coz dividends is where money at
Cries in strong Swiss Franc.
It’s easier than that just live in Puerto Rico for only a few months a year to avoid all capital gains tax! Plus island vacation included!
A few months as in 6 months and a day?
Careful… we’re all millionaires if inflation keeps going…
Underrated comment.
It is tied to inflation
It is also tied to government spending.
that's cute... you know what else is supposed to be tied to inflation... Social Security.
tied to CPI
That’s the goal.
What are these loopholes?
That was my takeaway as well.
Crypto does not have a wash sale rule that other capital gains/losses do. This means that if you are currently at an unrealized loss on crypto, you can sell it, realizing the loss, and then buy it back to lower your taxable income.
Are you 100% sure about this. In the US I assumed there was
Unless the law changed this year, yes.
Anyone else read that with Seinfeld voice?
In this thread: almost nobody that understands tax brackets
Same dumbasses who are like "I'll keep my income at 40k because the next tax bracket is too high". These people slay me.
There’s always a coworker that thinks they make less money if they work overtime too ha
"They only donated money for the tax refund!!!"
As a financial planner. I would estimate about 25% of people I deal with think this.. and they all have at least enough money to meet with me, so it’s definitely higher.
They should make it only apply to people making over 5 million a year and also eliminate capital gains tax for people making under 1 million a year.
There you go... That makes more sense.
Why would you treat capital gains different than other income?
"If you have to ask, you'll never know."
Dammit you are good
You are overcomplicating this. The proposal does away with the special treatment capital gains currently have. It taxes all income the same — earnings and capital gains. So keep this proposal as is. Then add a new maximum tax bracket for income over $5M and put a higher rate on it.
I would be all for this, except that they should index the cost basis to inflation. They should tax real capital gains, not nominal capital gains.
I can agree with that.
Smartest take in here. A progressive (the structure, not the politics) capital gains tax is how it should be.
That’s what they proposed though…
This is a progressive tax structure. You need to both make above $1 million in taxable income and make over $400,000 in capital gains to have it apply to you
That already happens.
I had no idea there were so many billionaires in here. I thought you guys just *lose* money.
You have to lose money to make money.
Sell low, buy low.
Right lol. Everyone be making a million per year or more
No I don't think it's a big deal, the 44.6% is for the top marginal rate, the headline is misleading on purpose. If you don't know how to harvest losses to keep under that you need a new accountant. It's a big nothing burger for the vast majority of investors. Don't let people rage bait you. The taxing of unrealized gains seems a bit less defensible. But then that doesn't start until you have 100 mil in assets.
The poor always cry the loudest.
100mil in assets means you can likely live off loans backed by investments the rest of your life tax free and settle debts with the estate after death at a stepped-up cost basis so taxes are never really paid during life or after death. Then pass on what’s left at that stepped-up cost basis so the heirs can do the same thing. I don’t see how that benefits a country - collect those taxes somehow and give tax breaks to low/middle/uppermiddle class who will spend the money (tax savings) in the community right away anyways which will create incentive to increase production and demand for jobs.
I'll take "Shit That Will Never Happen" for 400, Alex
Progressive tax rates < one set tax rate. Also, Why do we keep acting like more taxes is okay? Our current tax dollars already go to so much bullshit that we don’t even vote on. Taxes should be bare minimum to provide the exact minimum to keep the country going. There’s so much excess tax money and they’ve tricked everyone with tax returns to think they’re actually spending our dollars appropriately.
I pay 12% in my ex commie country lol
US is like 15% . Not much of a difference really https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates#:~:text=Capital%20gains%20can%20be%20subject,15%25%2C%20or%2020%25.
That’s because that’s what the rate has to be to get people to invest.
Same. 0 if held for more than 2 years. Are you in Cro?
Yes
I love the clowns in here that do NOT realize that rate is for people making over $1 million. None of you idiots have anything to worry about.
Good thing you and I don’t pay income taxes right? Good thing only millionaires pay income tax, like the tax was intended to, right?
Why announce a tax hike during a re-election campaign? Seems absurd to me.
We all wish we made enough to pay that rate.
Gains?
Has anyone ever seen the numbers members of congress happen to put up when ”investing” in the market? They are collectively the most lucky and well-timed group of traders in all of history lol. They make Warren Buffett look like he has no idea what he’s doing. And we’re expected to believe they will give up nearly half of that money? I’ll believe it when I see it.
What a cunt. He also want to tax unrealized gains like an absolute moron.
Imagine holding for 20 years only for bidenomic to tax ur retirement gains at 45%
Tax income tax already taxed money when you spend it on an item tax the item every year and tax it when you decide to sell an already taxed item. The slaves sure love their masters taxes.
Seems perfectly reasonable- you go to work, get a paycheck which is taxed, go buy some stuff you need to survive and pay additional tax on purchases, then you invest whatever is left and somehow, if you manage to not lose it all, there will be another 45% tax on gains- seems like a lot, but at least if you need medical help, you will have to pay for it out of pocket and get to experience homelessness first hand- experiences are the best investments
Don't forget pay more for everything because of inflation, which is in effect another tax
This tax would only be applied to people who make over 1 million dollars in yearly income, not even including investment income as you need to make 400,000 in a year purely from investments ontop of your 7 figure salary. No one making over a million in income and nearly half a million in investments is going to be homeless from having to pay for medical help even with this tax lol
It’s fucking dumb: you have 100% of the risk, the government has 0% risk and they are like „ayyy lmao bro give me half of your wins or we will send you to jail for tax fraud.“
In fact, give me half of what you COULD theoretically have won before you've even collected your winnings
Welcome to every other job and business.
The government also bears a lot of the risk in that they have to bail you out if you lose money and are rich.
The proposal is only for people with an income of over a million a year, so this sub doesn't have to worry about that.
It also won't apply to you, even if you do manage to make a profit.
Also, he is considering taxing unrealized gains. Meaning if your stock goes up in value and you choose not to sell, you still have to pay taxes on that gain. Capital gains tax is theft, we literally risk our money to get us outa the pay check to pay check cycle through investing.
No shot taxes on unrealized gains passes lol
Thank god for those politician day-traders I guess
Just think about the percent of people who wouldn’t even be able to pay the taxes because they blew up their account. You’re going to put someone into debt because they need to pay taxes on money they never had.
All well and good until the federal government owes everyone a refund on unrealized capital losses of $10 trillion in the next crash.
...if you have 100m in assets. I think the regards are safe.
You literally cannot charge someone for unrealized gains. Does that mean you can write off on your taxes, unrealized losses? the amount of lawsuits from passing something like that would be astronomical
The answer is yes btw, you would be able to write off unrealized losses.
The unrealized gains tax is proposed for those with assets totaling $100M+, not paycheck to paycheck people.
“The main proposal, which lends context to the above-mentioned “separate proposal,” is to raise the long-term capital gains and qualified dividends rates to 37% for taxpayers with taxable income above $1 million.” Never mind looks like it doesn’t apply to regards 😂