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?

keep taxing the crap out of people and they will instead take their investments overseas and avoid paying taxes (legally) in the US. They will find ways to avoid these new taxes. And it will hurt the US the most.

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.

+4

I can’t get exercised and angry over this. These people do not pay their fair share and the party they seem to support keeps wanting to tax poor people more “so they have some skin in the game.” Poor people’s skin is the what the rope is made of while the wealthy get to float above it all like ghosts.

What is the fair share?

Obviously if you do not have the money, cannot pay the taxes. Or if you do not have investment/business you can not pay the taxes. By this definition, the rich person must be paying most of the income/investment tax.

Yup. Some really wealthy avoid taxes in legal ways. Most of us in the $10M+ NW simply just pay the taxes. Majority of income is W2, rest is interest and cap gains from investments. We pay close to 45% yearly when you include state taxes. So yeah, cry me a river that we don't pay enough---we are the ones actually paying massive taxes at a very high rate. Pay SS at a high rate, and likely won't see most of it (I'm guessing 50% at most)

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?

keep taxing the crap out of people and they will instead take their investments overseas and avoid paying taxes (legally) in the US. They will find ways to avoid these new taxes. And it will hurt the US the most.

The US taxes worldwide income regardless of residency so it’s not easy to avoid tax simply by moving “investments” overseas— and of course it’s completely unclear what that even means. Most companies are multinational already and most foreign banks and brokerages want nothing to do with US citizens.

Just give up citizenship. Lotta wealthy will do it and move to Switzerland or Singapore.

Anonymous wrote:

Anonymous wrote:Another huge proposed long overdue change is the repeal of basis step-up at death for capital gains beyond $5m per person.

fifty

Anonymous wrote:

Anonymous wrote:

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.

I didn’t say it was a capital gain, but the recapture can push the capital gains into a higher tax bracket since it is stacked on top. There is no inflation adjustment for CGs, so people are often getting taxes on nominal gains when the investment actual lost value after inflation.

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.

Recapture income isn't capital gain. It is ordinary income taxed at ordinary income rates.

Anonymous wrote:Another huge proposed long overdue change is the repeal of basis step-up at death for capital gains beyond $5m per person.

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?

keep taxing the crap out of people and they will instead take their investments overseas and avoid paying taxes (legally) in the US. They will find ways to avoid these new taxes. And it will hurt the US the most.

The US taxes worldwide income regardless of residency so it’s not easy to avoid tax simply by moving “investments” overseas— and of course it’s completely unclear what that even means. Most companies are multinational already and most foreign banks and brokerages want nothing to do with US citizens.

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

Anonymous wrote:

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 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?

keep taxing the crap out of people and they will instead take their investments overseas and avoid paying taxes (legally) in the US. They will find ways to avoid these new taxes. And it will hurt the US the most.

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?

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.

+4

I can’t get exercised and angry over this. These people do not pay their fair share and the party they seem to support keeps wanting to tax poor people more “so they have some skin in the game.” Poor people’s skin is the what the rope is made of while the wealthy get to float above it all like ghosts.

What is the fair share?

Obviously if you do not have the money, cannot pay the taxes. Or if you do not have investment/business you can not pay the taxes. By this definition, the rich person must be paying most of the income/investment tax.