Biden shocked markets this week with a proposal to nearly double the capital gains tax...

Discussion in 'Finance' started by wgabrie, Apr 24, 2021.

  1. wgabrie

    wgabrie Well-Known Member Donor

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    Biden shocked markets this week with a proposal to nearly double the capital gains tax. Here's what the move could mean for high-flying tech stocks, according to 5 experts. (msn.com)

    Ok, so let's pretend you have a Trust Fund passed down to you and your children to pass on multi-generational wealth.

    Now, this tax only affects the rich, defined as making $1 million or more a year. So, let's pretend that you're rich.

    What are you going to do??? Let's suppose that your Trust Fund isn't earning enough to meet solvency at the new, higher tax rate? Why then, your multi-generational Trust Fund is going to start to shrink. That means you or your posterity is going to find themselves poor again. This wasn't supposed to happen. And, you might be even worse off if the Democrats pass a wealth tax.
     
  2. dharbert

    dharbert Well-Known Member

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    And I hope that millionaires, billionaires, and corporations leave the United States in droves because of it...
     
  3. FreshAir

    FreshAir Well-Known Member Past Donor

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    just tax all income the same - labored income should not be taxed more
     
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  4. FreshAir

    FreshAir Well-Known Member Past Donor

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    let em go, and when they leave, tax them 90%

    they are anti-American anyways if they leave, why should America support them

    Florida just raised their tax on the people to give businesses a tax break, Republicans are fine with raising taxes on the people
     
    Last edited: Apr 25, 2021
  5. Ivan88

    Ivan88 Well-Known Member

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    Democrats or Republicans, they are mostly neo con artists giving themselves tons of money.
     
  6. DEFinning

    DEFinning Well-Known Member Donor

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    I have not yet read your linked article, since I'd hoped you could cut to the chase, & provide the linked experts' bullet-point projections. I highly doubt, however, that one of those is that the nation's wealthiest families are likely, "to find themselves poor again."

    While I am surprised that Biden would be in favor of raising capital-gains' tax rate higher than the top income tax bracket (which he is advocating being moved up from 36 to 39.5 %), I doubt that extra 4% would be enough discouragement to get these people to completely leave the market; i.e., where is that slightly lower tax rate going to give them a better return than on stock trades? The most likely-- and perhaps even hoped-for-- results of this increase in capital gains tax, would be that investors take more of a look at longer-term investments, instead of the quick pick-up, then dump, strategy.
    And, of course, it should go w/o saying, this is just a suggestion from Biden, which will be debated in Congress; we will have to wait to see what the final bill looks like, but I have a feeling it will not raise capital gains fully to that 1st-draft of Biden's wish list.
     
    Last edited: May 3, 2021
  7. DEFinning

    DEFinning Well-Known Member Donor

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    Despite your ill-wishes for the U.S.-- which debunks any facade of patriotism you might present, behind your commentary-- it is unlikely this would lead to a mass exodus. Why is that? Because most wealthy people appreciate the amenities, and the stability, which 1st world countries offer. For those who wish to stay w/in their own, general cultural heritage (which is a natural human proclivity), that would mean EUROPE, or Canada, which both have generally much HIGHER TAX RATES than those Biden is proposing, because of their much more liberal social policies (including socialized medicine, universal day care, paid maternity & paternity leave, extended vacation time, etc.). It would be a pathetic sight, to see the most elite billionaires, giving up U.S. citizenship to live someplace with 2nd rate medical care & infrastructure. The perks that come along with U.S citizenship are worth the expense. Compare how much money many are willing to drop for membership in an exclusive club.

    This is a common threat, that the rich will leave, if taxes go up, but tax rates have been much higher, and the diaspora of the American monied class has yet to ever manifest.
     
  8. Tejas

    Tejas Banned

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  9. Aleksander Ulyanov

    Aleksander Ulyanov Well-Known Member

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    Yeh, and Bill Gates is relocating to Somalia.
     
  10. Aleksander Ulyanov

    Aleksander Ulyanov Well-Known Member

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  11. Tejas

    Tejas Banned

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    Even if the others are Federal Reserve presidents ?

    .
     
  12. Durandal

    Durandal Well-Known Member Donor

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    Oh, there are ways to deal with tax cheats.
     
  13. Bluesguy

    Bluesguy Well-Known Member Donor

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    What if that produces less tax revenue on the investment side and less GDP overall? Would it be worth that and if so why?
     
  14. FreshAir

    FreshAir Well-Known Member Past Donor

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    let's try it and find out
     
  15. Bluesguy

    Bluesguy Well-Known Member Donor

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    Already done so

    What if that produces less tax revenue on the investment side and less GDP overall? Would it be worth that and if so why?
     
  16. FreshAir

    FreshAir Well-Known Member Past Donor

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    have we? don't think so....
     

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