Trump says he is 'seriously' considering a capital gains tax cut

as the economy is facing collapse anyways, so am I, in fact I say instead of the fed giving trillions to the rich, pass it on down to the working class instead - who knows, it might not be too late for trickle up to work

 

This is a great idea and should be bipartisan so long as we agree not to tax essentials like food and water. Washington has this as their tax system and they are a progressive state. It makes a lot of sense and eliminates the headache of tax deductions and itemizations and different brackets. etc... Since the tax is only on non essential items, the super poor can avoid tax entirely and the middle class will pay less tax unless they try to live outside their means and live lavishly as if they were a millionaire.

 

actually the economy is coming back after the chinese virus shut down.

but by making it easier for people to invest in businesses, it will...more capital in businesses means more money to hire employees

this also doesn’t involve the feds giving anyone money. just not taking as much in the future

 

nope, the fed has been dumping money into the economy for years and keeping interest rates almost zero, the economy is only afloat due to the fed

the debt has risen more under Trump's term than any President before him

how bought raising interest rates so the banks have to borrow from the people again vs the fed, be nice if our savings accounts were back to about 8%

 

the debt has risen due to the chinese virus relief

but will continue to rise until medicare, and medicaid the largest drivers of debt are fixed

i’ve never known 8 percent interest rates on savings accounts from banks

 

no taxes if estate is under $4.5 million

 

The inevitable resort to personal insult...

Despicable.

There are few acts a human being can commit that are more despicable than to accuse those who oppose injustice of envy for those who profit from it.

No, it's almost always just the proceeds of successful rent seeking. To earn money requires a commensurate contribution to production. Rich, greedy, privileged parasites know better than to try to contribute anything to production: they know that the rewards for actual productive contribution tend to be competed away, while the rents of privilege cannot be competed away.

You mean they are NOT paid until realized, and then only to the extent they have not had their cost basis increased by their owner's death.

So you inherited a gain of $145K tax-free, and only pay capital gains tax on increases on top of that, and only if you don't reinvest the proceeds in another house. That's what I said.

Sure it does. "The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread."
-- Anatole France

It also enables the poor as well as the rich to obtain unearned, tax-free wealth by owning stocks and real estate...

 

Good idea. But someone beat you to it, 2400 years ago:

"When there is an income tax, the righteous man will pay more than the unrighteous man on the same amount of income." -- Plato, The Republic

That depends on whether they make that money by relieving scarcity through their productive contributions or by inflicting scarcity on others by dint of government-issued and -enforced privilege.

Why would we tax them on what they consume? They are already paying the market price for it -- and about half of a broad-based tax on consumption would be shifted back onto producers. What we should tax people on is what they TAKE from the community, which is measured by the value of their government-issued and -enforced privileges.

 

~ Obviously Anatole France has not been to San Francisco recently ...

 

Nope. There are three long-term cap gains rates and short term gains get taxed at regular income rates.

 

delete

 

You don't pay CGT on selling your personal home so makes no difference what you do with the money ( presuming same rules as UK and quite confidant they are)

 

Lower CGT does not encourage business investment as most estate sales occur when the owner is retiring. Lower CGT benefits the richer population. It certainly would not result in increased cap gains tax because if you sell your business property you pay lower CGT and the owner of the business property you are buying from will also pay a lower CGT

 

Sure it does, if you're rich enough. Joe Plumber earns $50K Income tax takes 20%, Payroll another 12%, the state and county even more yet he still manages to buy some stock.
Joe Inheritance sells something and pays only a lower capital gains tax. He has done nothing to earn that money beyond luck of the sperm.

Not in the case of inheritance.

If you borrow money to use for investment, say a slum lord property, using your inherited stocks or properties as collateral, then you earn money from the investment to pay the loan and live off of. If you do it well you should never have to touch the principal.

You've never taken out a loan I take it. If you borrow $150K to buy a house you do not report an increase of $150K on your income tax form.

 

1) no it doesn’t...and 50k isn’t rich
2) sure it is...cap gains isn’t realized until its realized
3) no it’s off rent...and if you keep a slum. not much...but you’d be paying ordinary income on that
4)a mortgage is a specific type of loan. the poster i was referring to was a loan to live off of

 

um yeah do, unless you reinvest it

 

yes and both rich and poor pay those same rates. it’s broke up on short v long, not rich and poor

 

If you sell the house you live in you don't pay CGT ( presuming same rules as UK and quite confidant they are)

Edit "Section 121[50] lets an individual exclude from gross income up to $250,000 ($500,000 for a married couple filing jointly) of gains on the sale of real property if the owner owned and used it as primary residence for two of the five years before the date of sale"

$500,000 gain in 5 years not taxed on your primary home! So no CGT on the average home

 

That's not true in the USA unless you take that gains and reinvest it. Which most anyone should do...but that's true for any capital asset.

 

I copied and quoted the US law

 

Well you quoted a line from wiki, but yes you avoid that much from your gross income for purposes of income tax, but you still pay cap gains. They are two different taxes

 

No, you don't pay capital gains tax on selling your own home. You can do what you like with the money - you can buy a motorhome and travel the world and live on the proceeds, you can rent and live on the proceeds of your home sale - whatever you like.

26 U.S. Code § 121. Exclusion of gain from sale of principal residence
"Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more."

 

Eh. Probably a wash when you consider tax reform that cost him money by increasing the Standard deduction that advantaged middle and lower class taxpayers and limited some itemized deductions that advantaged taxpayers with higher incomes. Anyway, it is unlikely Trump has alot of long term investments in stocks. His wealth is mostly in real estate ,,, which means that when Pelosi and Reid crashed the real estate market in 2007, a crash set up by Cuomo in 1999, Trump likely lost half of his net worth --- explaining why his tax liability may have been sharply reduced by depreciation. People who have never owned a business should refrain from making assertions about people who do. Still, he has donated his Presidential salary back to the government and handed the Treasury some of his business profits. Last I looked Trump's kids work for us for free.

This is in sharp contrast to Biden, who took a government salary and used his position to enrich his son, himself and his brother.

 

LOL. Still nope. Short term is based on your tax rate so a person making 30K 300K and 3MK will pay three different rates that are the the same, and on long term rates people may pay as little as zero or as high as 20% which is again not the same.

 

well ok...your right...your ordiniary income rate applies....and poorer people pay less

I was referring to long term though...sorry....they are entitled to the same rates, it's not based on their wealth, or income