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

How can encouraging people to divest their stocks now encourage job creation?

The shame is most Americans don't even know what capital gains are so he can get away with it. Thank goodness the constitution gives congress sole authority in these matters. Oh wait...

 

All he can do is index capital gains to inflation. What exactly do you think he is "getting away with"??? Allowing people to keep a little more of their investment money?

Ruh Roh Scooby Do call the Po-leese.

 

I’m hoping he does this. It’s ridiculous that I should have to pay taxes on inflation as opposed to just the actual net gain of my investment.

 

It's not rocket science. If someone wants to invest in an operational enterprise (you know, an enterprise that hires workers) they most likely have to convert their stock into liquid assets which requires selling the stock.

 

Sounds good to me.

On the other hand, Democrats want to increase those taxes.

Vote emocrat 2020

 

So basically reduce tax for the richest Americans and no one else!

I supported Trump for awhile but this really irks me. I vote for economic reasons, deregulation, foreign relations, less wars but stronger military, space dominance, and American ism. Most of all, I vote for the future of my fellow working class Americans.

Is Trump forgetting who voted for him?

This won't create jobs. If he wants to bring jobs back to the USA 'eleminate the corporate tax' . Tax Dividends and Gains at the same rate as personal income. Tax deductions for business is more likely to create jobs and gdp growth than a tax deduction for a super rich person who only may or may not use it for business purposes.

Please Trump don't make this part of your 2020 campaign promises!

 

Simple. Lower cap gains tax rates encourage business investment and also increases cap gains tax collections. Looking just at the sale of shares among individuals gives a very narrow perspective.

 

So, Democrats want the government to collect fewer tax dollars so they can depress business investment? Why?

 

Here. I dusted this off. Are ideology and jealousy that important?
The best GDP growth rates occurred in 1997 (4.5%), 1998 (4.5%), and 1999 (4.7%) after the passage of the Taxpayer Relief Act of 1997.


https://www.gpo.gov/fdsys/pkg/PLAW-105publ34/pdf/PLAW-105publ34.pdf
As a result of cutting the Long Term Capital Gains Tax Rate, LT Capital Gains Tax Collections increased from
$58.782B in 1996 to
$69.572B in 1997 to
$80.611B in 1998 to
$91.416B in 1999


http://www.taxpolicycenter.org/statistics/historical-capital-gains-and-taxes
This is no surprise. Long Term Capital Gains rates were increased for 1987. Tax Revenues from LT Capital Gains took a beating, dropping from
$50.834B in 1986 to
$31.791B in 1987
But that's not the whole story. The GDP growth rate dropped from 1985 (4.2%) to 1986 & 1987 (3.5%) due to the 1986 passage of the LT Capital Gains rate increase legislation and its implementation in 1987.


This was, of course, a bipartisan poor choice, reversing the slashing of LT Capital Gains rates in 1981 that dragged us out of Carter's stagflation and gave us impressive GDP growth rates in 1983 (4.6%) and 1984 (7.3%)


Instead we got Black Monday at the beginning of the final quarter of 1987.

 

Cherry picking without looking at the whole economy.

 

Let me rephrase. Most of those Americans who will be voting for Biden do not know what capital gains tax is.

And most of those that do and are voting for Biden will be giving their thumbs up.

 

It sounds like you accept the fantasy meme that Trump tax decreases were for the rich. For joint returns the lowest bracket kept the same rate of 10%; up to $165,000 Trump lowered the rate by 3%; to $315,000 4% lower; to $400,000 1% lower; to $600,000 rates stayed the same; over $600,000 2.6% lower. Beyond that Trump doubled the child care credit which applies to lower incomes. He also greatly increased the standard deduction which is more beneficial to lower incomes. You can't believe some of what you hear and most of what Democrats say. The Democrats ballyhoo that they will only increase taxes for the rich and then define "rich" way down.

 

Well Cap Gains is more the stock....selling real estate, any investment really....

 

What makes you think only the richest Americans have cap gains? I would say that it impacts middle class folks the most

 

So you think the rich should pay less tax than the middle class because they are the only ones who contribute to job growth?

At the very least they should pay the same tax rate as the middle class but they can pay less by having most of their income from stocks while normal people have to rely on labor income.

 

Strawman....nobody said that.

 

Sure but it's not different from a stimulus package. You increase the spending power at the bottom and it increases demand. At the top, they now have the spending power to meet that demand. Thus the economy grows.
This can increase 'some' tax revenue for the government but more is lost due to the lower tax brackets. This means that it grows the debt especially if cuts in government spending are not made.

The problem I have with this tax cut is that it's not a tax cut for everyone. It's a tax cut specifically for the rich at the cost of hurting our debt. It also does nothing to stimulate demand. The economy is a circulation of money and every part of it has to be stimulated for this type of manipulation to be effective.

 

Anyone supporting tax deductions on Gains is in effect supporting that. The middle class pays a higher tax bracket than the rich because the rich receive more of their income from stock investments than anyone else and Gains have a lower tax bracket.

 

Rich and Middle class pay the same tax rate on cap gains...

So no...

are you referring to retired people living off investmetns as "rich" ok you are are right they live mainly off investments...because they don't have ordinary income....but they certainly paid their far share over the years to be able to retire

 

I have thought this was a good idea a long time ago. Capital gains means that the value of the investment has increased in value. It does not put money in your pocket until you sell that stock. By leaving the money in the investment, it helps that business flourish. It makes more sense that only money distributed to the investor would be taxed.

 

Specifically on caps gains yes, but the middle class cannot afford to receive the majority of their income through caps gains. In effect it results in the middle class paying a higher tax bracket for their overall income in all areas.

I am talking about the super rich living of investments not retired people who spent their whole life to get to the point where they can survive barely on their 401k or Ira plans.

 

Cool...ok yeah they aren't retired....well yeah because if they are getting ordinary income and working they have to pay taxes on that.

I am not sure what "super rich" you are talking about...if they aren't working, and getting ordinary income they aren't working....that's true for anyone...poor or rich....cap gains treats everyone the same.

The money in the investments was already taxed at ordinary income levels.

Are you saying people can't retire?

 

Absolutely.
The sale of the stock in of itself does not harm the company because someone else is buying it. But if there is a temporary tax break to act as a stimulus what can happen is you have more sellers than buyers which drives the value of the stock down and that affects the companies by reducing their value and ability to sell their own stock for cash or to use it as collateral.

 

Retirement packages like the IRA are exempt from cap gains tax. The tax is already paid on the income at the higher tax rate for personal income.

The super rich have enough money to live on their investments without worrying about working long before retirement age. They make enough in cap gains and dividends and some in their own business.

They should pay the normal income tax for that income. If they have retirement accounts they will be treated differently and won't pay cap gains on that money but they wont be able to liquidate it until they are older either.

 

I wasn't referring to the IRA or other retirement packages......I was referring to simple investments

Yes some folks are able to retire early...but the money they have invested was taxed at ordinary income levels. Good for them...retiring early also doesn't make you "super rich" whatever that means

They are taxed the same way as everyone else.