biden pushing for new capital gains tax

[Anonymous]

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

But it should be higher, make it 1.5 mil or 1.75. These low numbers hurt the average man the most. A property owner that has two or three rentals will get totally screwed. This really hits hard for families trying to build generational wealth.

$1mil income is the "average man"? "Low numbers"? GTFO.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

But it should be higher, make it 1.5 mil or 1.75. These low numbers hurt the average millionaire man the most. A property owner that has two or three rentals will get totally screwed. This really hits hard for families trying to build generational wealth.

FTFY

How utterly cruel, they want to hurt the average man with 3-4 properties earning over $1M/year! Poor guy, how are his great great great grandchildren going to survive?

No not per year, it’s likely just once, when they liquidated the asset. It’s not salary. So everything they worked for, and paid off is basically useless. If you have a mortgage that you’ve paid off then go to sell and pay almost 50% in tax then it doesn’t make sense numbers wise. The interest paid on the mortgage and the tax on gains plus the income from the rents make this a losing endeavor. Why not just pass a law saying CEO’s have to be compensated in salary and cash bonuses and limit the stock they can get? Why go for a cash grab disguised as sticking it to the man. Be smarter.

This is me. Bought a house in 04 for $575k which was an obscene amount of money to me. The house was in a bad area and was more than I felt comfortable paying but, I took a chance. Lived in the house for 7 years, during that time I got married so household income doubled and savings increased. In 2011 with two kids entering school needed a house in better school district. Mortgage rates were low so rolled outstanding balance into new mortgage and set up an LLC and rented the house out for a decent amount and hoped to hold it as our retirement investment (sell and use proceeds for retirement) Today, the house is worth just over 1 million dollars. While we are not poor we most certainly are not thought of as the target audience for this new tax. If we sell the house for $1 million then $440,000. We would walk away with $560,000, this is less than we bought the house for 20 years ago. This is complete craziness.

How would it impact you at all? Selling your primary residence you are exempt on the first $500,000. After which you pay 20% on the margin above 500,000. You would pay not capital gains.

Biden’s plans is a combination of raising the top margin income rate to 39.6 and a net investor income rate increase of 1.2 above $400,000. You would need to have an income of over 1,000,000 plus investment income of $400,000. If you meet that standard your would be taxed at 46%. Now if you had $400,000 income and 1,000,000 investment income you would roughly paid 28%.

If you want to have lower taxes we need to tax cap gain as income.

Selling a rental not primary residence

You’re welcome to move into your rental for two years to take advantage of the current tax break. I have four rentals and that’s what I plan to do. Also I will have decades of profit from the tenants paying rent, so I would not consider myself “screwed” at any point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

But it should be higher, make it 1.5 mil or 1.75. These low numbers hurt the average millionaire man the most. A property owner that has two or three rentals will get totally screwed. This really hits hard for families trying to build generational wealth.

FTFY

How utterly cruel, they want to hurt the average man with 3-4 properties earning over $1M/year! Poor guy, how are his great great great grandchildren going to survive?

No not per year, it’s likely just once, when they liquidated the asset. It’s not salary. So everything they worked for, and paid off is basically useless. If you have a mortgage that you’ve paid off then go to sell and pay almost 50% in tax then it doesn’t make sense numbers wise. The interest paid on the mortgage and the tax on gains plus the income from the rents make this a losing endeavor. Why not just pass a law saying CEO’s have to be compensated in salary and cash bonuses and limit the stock they can get? Why go for a cash grab disguised as sticking it to the man. Be smarter.

This is me. Bought a house in 04 for $575k which was an obscene amount of money to me. The house was in a bad area and was more than I felt comfortable paying but, I took a chance. Lived in the house for 7 years, during that time I got married so household income doubled and savings increased. In 2011 with two kids entering school needed a house in better school district. Mortgage rates were low so rolled outstanding balance into new mortgage and set up an LLC and rented the house out for a decent amount and hoped to hold it as our retirement investment (sell and use proceeds for retirement) Today, the house is worth just over 1 million dollars. While we are not poor we most certainly are not thought of as the target audience for this new tax. If we sell the house for $1 million then $440,000. We would walk away with $560,000, this is less than we bought the house for 20 years ago. This is complete craziness.

How would it impact you at all? Selling your primary residence you are exempt on the first $500,000. After which you pay 20% on the margin above 500,000. You would pay not capital gains.

Biden’s plans is a combination of raising the top margin income rate to 39.6 and a net investor income rate increase of 1.2 above $400,000. You would need to have an income of over 1,000,000 plus investment income of $400,000. If you meet that standard your would be taxed at 46%. Now if you had $400,000 income and 1,000,000 investment income you would roughly paid 28%.

If you want to have lower taxes we need to tax cap gain as income.

New taxes always start like this. First they'll say 'this only for people who make over $1M!!'.

Then 2 years later they'll drop the cap down to $500k. 5 years from now after they're addicted to the tax they'll drop the cap to $200k. Then eventually it'll be all capital gains taxed at higher rates.

There has never been a tax democrats haven't like nor given up.


Newsflash: the rich will find ways around it anyway. You may not be aware because you're a peasant, but all the rich will do is invest in things like gold, exclusive artwork, etc. and simply store it at tax free freeports in places like Switzerland. The Geneva Freeport, for example, has a collection of art even more valuable than the entire New York Met!

In the end I fully expect the rich to find global loopholes, stop investing in America, and this tax to eventually find it's way imposed on us all.

If you listen to some sickening Democrats, they'll even claim everything over $100k in income should be taxed at 90% rates, because they claim 'you don't need over $100k'. This country is alarmingly becoming a socialist joke.

lol sure. Come back and posts when this new rate will actually apply to you or more than 0.001% of the country.

+1 Where would the GOP be without all of these would be millionaires who are just suffering temporary setbacks.

[Anonymous]

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

I had thought having a lower-tax rate on capital gains was to provide an incentive for capital investment. The folks that can make meaningful capital investments are also the people that make over $1M a year. This proposal undermines the rationale for a lower tax rate on capital gains. May as well just tax capital gains at ordinary income rates. Alternatively, do a better job of characterizing carried interest as compensation income, rather than distributive share of capital gains.

[Anonymous]

this will make such a dent in the $34.8T debt

[Anonymous]

Anonymous wrote:Biden Calls for 44.6% Capital Gains Tax Rate, Highest Capital Gains Tax Since Its Creation in 1922 - ENJOY.

One of the big features of Saint Ronnie's tax reform in 1986 was the equalization of income tax and capital gains tax rates.

I do agree carryover basis is unworkable. They did this for one year in 2010 with the (temporary) repeal of the estate tax and it caused a lot of ... weird things.

Like this: https://lawprofessors.typepad.com/trusts_estates_prof/2011/01/billionaire-dies-48-hours-before-estate-tax-is-reinstated.html

Which wasn't suspicious at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

I had thought having a lower-tax rate on capital gains was to provide an incentive for capital investment. The folks that can make meaningful capital investments are also the people that make over $1M a year. This proposal undermines the rationale for a lower tax rate on capital gains. May as well just tax capital gains at ordinary income rates. Alternatively, do a better job of characterizing carried interest as compensation income, rather than distributive share of capital gains.

Totally agree both of things are warranted but given our political system they don’t seem to be feasible right now (I doubt this proposal will make it either but at least he’s trying something new)

[Anonymous]

Anonymous wrote:Specific to home ownership, capital gains tax rate needs to take into account length of time home was owned in some way. Elderly can't downsize in retirement because the gains tax plus cost of selling is too prohibitive. People sitting in large homes they don't need and can't take care of because we make it too difficult for senior citizens to sell property.

There's already a $500,000 exclusion for capital gains taxes (for married couples) on housing. Granted, that was created in 1997 so probably should be indexed for inflation. But it's a fallacy to say people can't downsize because they might have to pay capital gains taxes. The real issue is they can't find the kind of housing stock they want to live in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

This.

Unless you are a hedge fund manager or a billionaire, this doesn't impact you.

And if you fall into one of these categories, then county your blessings for the opportunities this country has afforded you to make some serious money.

Next time you hear Musk complaining about immigration, just know that this is actually what he cares about.

It’s possible to have two thoughts at the same time. I am worried about Biden’s tax policy and his immigration policy (if you can call it that).

Are you referring to the immigration policy that was bipartisan legislation in Congress that Republicans decided to kill because Donald Trump wanted an election issue rather than a solution to the problem? That policy? I just want to be clear. Because when you say "if you can call it that" my take is that "it" is the legislation that Trump ordered killed because he wanted to run on the issue.

Just asking. Please clarify.

[Anonymous]

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

I had thought having a lower-tax rate on capital gains was to provide an incentive for capital investment. The folks that can make meaningful capital investments are also the people that make over $1M a year. This proposal undermines the rationale for a lower tax rate on capital gains. May as well just tax capital gains at ordinary income rates. Alternatively, do a better job of characterizing carried interest as compensation income, rather than distributive share of capital gains.

No because the people who make most of their money on cap gains pay about 15-20%. Receiving income vs cap gain is a delta of 20% on taxes. This is government picking winnings and losers based on an arbitrary terminology which distorts the market. All income/revenues should be treated as income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

But it should be higher, make it 1.5 mil or 1.75. These low numbers hurt the average millionaire man the most. A property owner that has two or three rentals will get totally screwed. This really hits hard for families trying to build generational wealth.

FTFY

How utterly cruel, they want to hurt the average man with 3-4 properties earning over $1M/year! Poor guy, how are his great great great grandchildren going to survive?

No not per year, it’s likely just once, when they liquidated the asset. It’s not salary. So everything they worked for, and paid off is basically useless. If you have a mortgage that you’ve paid off then go to sell and pay almost 50% in tax then it doesn’t make sense numbers wise. The interest paid on the mortgage and the tax on gains plus the income from the rents make this a losing endeavor. Why not just pass a law saying CEO’s have to be compensated in salary and cash bonuses and limit the stock they can get? Why go for a cash grab disguised as sticking it to the man. Be smarter.

This is me. Bought a house in 04 for $575k which was an obscene amount of money to me. The house was in a bad area and was more than I felt comfortable paying but, I took a chance. Lived in the house for 7 years, during that time I got married so household income doubled and savings increased. In 2011 with two kids entering school needed a house in better school district. Mortgage rates were low so rolled outstanding balance into new mortgage and set up an LLC and rented the house out for a decent amount and hoped to hold it as our retirement investment (sell and use proceeds for retirement) Today, the house is worth just over 1 million dollars. While we are not poor we most certainly are not thought of as the target audience for this new tax. If we sell the house for $1 million then $440,000. We would walk away with $560,000, this is less than we bought the house for 20 years ago. This is complete craziness.

How would it impact you at all? Selling your primary residence you are exempt on the first $500,000. After which you pay 20% on the margin above 500,000. You would pay not capital gains.

Biden’s plans is a combination of raising the top margin income rate to 39.6 and a net investor income rate increase of 1.2 above $400,000. You would need to have an income of over 1,000,000 plus investment income of $400,000. If you meet that standard your would be taxed at 46%. Now if you had $400,000 income and 1,000,000 investment income you would roughly paid 28%.

If you want to have lower taxes we need to tax cap gain as income.

Selling a rental not primary residence

You’re welcome to move into your rental for two years to take advantage of the current tax break. I have four rentals and that’s what I plan to do. Also I will have decades of profit from the tenants paying rent, so I would not consider myself “screwed” at any point.

Moving into your rental doesn’t allow you to avoid paying taxes on the sale entirely. Depreciation recapture still needs to be paid. If your CPA is telling you otherwise you need to hire someone that actually understands taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

This.

Unless you are a hedge fund manager or a billionaire, this doesn't impact you.

And if you fall into one of these categories, then county your blessings for the opportunities this country has afforded you to make some serious money.

Next time you hear Musk complaining about immigration, just know that this is actually what he cares about.

It’s possible to have two thoughts at the same time. I am worried about Biden’s tax policy and his immigration policy (if you can call it that).

Are you referring to the immigration policy that was bipartisan legislation in Congress that Republicans decided to kill because Donald Trump wanted an election issue rather than a solution to the problem? That policy? I just want to be clear. Because when you say "if you can call it that" my take is that "it" is the legislation that Trump ordered killed because he wanted to run on the issue.

Just asking. Please clarify.

To be clear, the incoherent policy was to cancel numerous executive orders and policies put in place by Trump (including many before COVID such as remain in Mexico) and then do nothing and just watch the swarm of migrants. It was clearly a repudiation of Trump’s approach and many of us thought he would have a plan of his own to address these things. But apparently he didn’t and doesn’t. His only policy objective was to be anti- anything Trump did. The bill you speak of came after 3 years of open borders during which his administration refused to even acknowledge the issue. He soured any Republican support for things like DACA by just letting anyone and everyone in. So your cutesy effort to reframe this as a Bipartisan fail is too cute by half. And all the polls show it. Was that clear enough?

[Anonymous]

Anonymous wrote:Democrats have never met a tax they didn't like.

Biden also wants to impose a 25% tax on wealthy individuals for UNREALIZED gains.

That one is even dumber. You shouldn't be able to tax me on something that is "unrealized". It could be a loss tomorrow, so do I get a refund then?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:He’s just considering proposing that for people making over a $1 million the capital gains tax rate is the same as a the ordinary income rate.

It’s a way to avoid all the ridiculous games like the carried interest loophole that lets hedge fund managers making $50 million pay tax at a lower rate than w-2 employees making $200k.

But it should be higher, make it 1.5 mil or 1.75. These low numbers hurt the average millionaire man the most. A property owner that has two or three rentals will get totally screwed. This really hits hard for families trying to build generational wealth.

FTFY

How utterly cruel, they want to hurt the average man with 3-4 properties earning over $1M/year! Poor guy, how are his great great great grandchildren going to survive?

No not per year, it’s likely just once, when they liquidated the asset. It’s not salary. So everything they worked for, and paid off is basically useless. If you have a mortgage that you’ve paid off then go to sell and pay almost 50% in tax then it doesn’t make sense numbers wise. The interest paid on the mortgage and the tax on gains plus the income from the rents make this a losing endeavor. Why not just pass a law saying CEO’s have to be compensated in salary and cash bonuses and limit the stock they can get? Why go for a cash grab disguised as sticking it to the man. Be smarter.

This is me. Bought a house in 04 for $575k which was an obscene amount of money to me. The house was in a bad area and was more than I felt comfortable paying but, I took a chance. Lived in the house for 7 years, during that time I got married so household income doubled and savings increased. In 2011 with two kids entering school needed a house in better school district. Mortgage rates were low so rolled outstanding balance into new mortgage and set up an LLC and rented the house out for a decent amount and hoped to hold it as our retirement investment (sell and use proceeds for retirement) Today, the house is worth just over 1 million dollars. While we are not poor we most certainly are not thought of as the target audience for this new tax. If we sell the house for $1 million then $440,000. We would walk away with $560,000, this is less than we bought the house for 20 years ago. This is complete craziness.

How would it impact you at all? Selling your primary residence you are exempt on the first $500,000. After which you pay 20% on the margin above 500,000. You would pay not capital gains.

Biden’s plans is a combination of raising the top margin income rate to 39.6 and a net investor income rate increase of 1.2 above $400,000. You would need to have an income of over 1,000,000 plus investment income of $400,000. If you meet that standard your would be taxed at 46%. Now if you had $400,000 income and 1,000,000 investment income you would roughly paid 28%.

If you want to have lower taxes we need to tax cap gain as income.

Selling a rental not primary residence

So? The new tax would not apply to you because you are not making over 1,000,000 in income. You would pay 0 one the first 63k and 15% on the next 551k. You do not even understand how a marginal tax rate works. It is a 1.2% increase on the top marginal rate of cap gains. This will hit hedge fund managers, etc.

You don’t understand how taxes work if you are ignoring depreciation recapture. Selling a property worth a million that you bought at 500k 20-30 years ago can easily push your taxable income close to 1M. The depreciation recapture will likely be in the 200-400k range depending on the original value of the land. So the taxable income will be 700k-900k including recapture on a property that did not gain value after adjusting for inflation.

[Anonymous]

Biden is awful. $1M is NOT a lot of money sorry. Maybe if you only will ever earn $75k/yr it is but to most of us who have a couple degrees or own a successful mid size business - $1M is not anywhere close to gobs of money. In the very near future, given how general inflation is and how food prices soar, $1M will be more the hope that UMC want to target as HHI. So this whole raising this much in any tax rate is obscene.

He's going for votes really. He's been on a tear between taking away student debt to everything on the legislation front, trying to win votes from Trumps market - the lower/middle class. This is a show and something he can brag about in trying to equalize everyone.

For UMC folks, this is not a good sell. I think he figures that the hatred for Trump already established in educated populations overrides any votes he loses in that market. I almost hope he loses even though I don't want Trump either. I'm very disappointed in Biden. I would have preferred that he focus on other priorities than things like this which really doesn't impact the entire country very concretely.