Boy I hope we get rid of taxes on savings interest

[Subyman]

Wow, that's pretty sad if your savings are only 3 dollars a year in interest. You guys do know that a lot of responsible adults have decent portfolios, right? Can't spend all your money on computer parts

 

[spidey07]

Wow, that's pretty sad if your savings are only 3 dollars a year in interest. You guys do know that a lot of responsible adults have decent portfolios, right? Can't spend all your money on computer parts

1%'er! GET HIM! He makes money on savings and dividends! TAKE! Consume and redistribute for the good of all.

 

[nehalem256]

1%'er! GET HIM! He makes money on savings and dividends! TAKE! Consume and redistribute for the good of all.

If a person saves their money they might start a business.

And they won't be one lost paycheck away from financial disaster

How will we get him to back our socialist welfare programs?

 

[spidey07]

If a person saves their money they might start a business.

And they won't be one lost paycheck away from financial disaster

How will we get him to back our socialist welfare programs?

I know! Let's tax their savings and dividends! That will keep them down and prevent them from ever achieving any real meaningful wealth.

 

[MixMasterTang]

Liberals oppose incentivizing savings, because people with savings are less dependent on the government.

And considering I was pulling in close to $1000/yr in interest when I was 20 maybe people should stop sucking at life.

How exactly did you have over $50,000 in savngs at 20 years old?

 

[spidey07]

How exactly did you have over $50,000 in savngs at 20 years old?

Back when interest was 4-5% it'd only be 20k.

 

[lotus503]

Liberals oppose incentivizing savings, because people with savings are less dependent on the government.

And considering I was pulling in close to $1000/yr in interest when I was 20 maybe people should stop sucking at life.

When you were 20 it was probably paying over %5, but as someone already pointed out if you have that much money in savings right now to get $1000, your a shitty investor.

You could literally put your money anywhere else and get more.

 

[ElFenix]

Capital gains, interest and dividends. Makes Roth 401k and IRA plans worthless for those falling under the income brackets as every account will now be a Roth.

not necessarily. 401k and IRA plans are often exempt property.

 

[MixMasterTang]

Back when interest was 4-5% it'd only be 20k.

Even then, how does an average 20 year old American have $20,000 in savings without being supported by their parents or by government subsidies?

 

[randomrogue]

I really hate paying that tax on my savings account every year.

Oh wait, I never make enough to even be taxed in the first place.

What a stupid plan, Someone give me a % of households that make under 100k a year actually make in interest income.

I saved money before I made 100K. It's really not that hard to live within your means.

 

[Darwin333]

I really hate paying that tax on my savings account every year.

Oh wait, I never make enough to even be taxed in the first place.

What a stupid plan, Someone give me a % of households that make under 100k a year actually make in interest income.

Umm, nobody is making anything in interest. Even if you were foolish enough to put money in a savings account with the intention of making money off the interest, you actually lose money (more specifically purchasing power) at the current rates.

 

[nehalem256]

How exactly did you have over $50,000 in savngs at 20 years old?

I had $15,000 the day I graduated HS, all of which I earned myself.

It is called work ethic.

 

[MixMasterTang]

I had $15,000 the day I graduated HS, all of which I earned myself.

It is called work ethic.

It's also called being able to have a job when you're in high school. Not everyone lives in an urban area, has access to transportation, etc.

 

[randomrogue]

It's also called being able to have a job when you're in high school. Not everyone lives in an urban area, has access to transportation, etc.

You're just being picky. As soon as people start working their savings should start growing. I had $30K+ in savings after my first year working.

 

[lotus503]

I had $15,000 the day I graduated HS, all of which I earned myself.

It is called work ethic.

Thats cool, by 20 I was over 30k in debt for paying for my own education.
Guess I had no work ethic.

 

[randomrogue]

Thats cool, by 20 I was over 30k in debt for paying for my own education.
Guess I had no work ethic.

Totally different discussion: Whether taking huge student debt is worth it. Regardless I didn't pay off my student loans for 5 years and was saving the whole time. If your student loans had a lower interest rate than you could get in savings (of some sort) then you should have saved before paying off the loans.

 

[lotus503]

Totally different discussion: Whether taking huge student debt is worth it. Regardless I didn't pay off my student loans for 5 years and was saving the whole time. If your student loans had a lower interest rate than you could get in savings (of some sort) then you should have saved before paying off the loans.

I had savings too, but my net worth was -30k. I placed a priority on future earning potential and for me it certainly was the right call.

Even now I only have roughly 15k in actual savings, but I have many other assets some liquid.

The point I am making is, having a big savings account at 20 could also mean you are simply a lousy investor, which for the person i replied to would hold true, if he is getting 1k in interest from a savings account its a shitty investment.

 

[randomrogue]

I had savings too, but my net worth was -30k. I placed a priority on future earning potential and for me it certainly was the right call.

Even now I only have roughly 15k in actual savings, but I have many other assets some liquid.

The point I am making is, having a big savings account at 20 could also mean you are simply a lousy investor, which for the person i replied to would hold true, if he is getting 1k in interest from a savings account its a shitty investment.

I started a spreadsheet when I graduated from University. I was of course negative at first.

Saving accounts could be many things. At first I wanted my assets liquid but that meant t-bills and other paper and not just a 0% savings account. At 20 having everything locked up might not be a smart move either. I was spending money at 20 and enjoying myself quite a bit on weekends.

1K in interest on what principle? 1K on 15K is pretty good for liquid assets. Very good in fact.

 

[lotus503]

1%'er! GET HIM! He makes money on savings and dividends! TAKE! Consume and redistribute for the good of all.

No just tax it what it is

Income

 

[spidey07]

No just tax it what it is

Income

It's not income, it's gain and as such shouldn't be taxed.

You're not taxed on the gain when you sell a house (thank you Bush!!! You ROCK!), why should other gains be taxed?

 

[randomrogue]

It's not income, it's gain and as such shouldn't be taxed.

You're not taxed on the gain when you sell a house (thank you Bush!!! You ROCK!), why should other gains be taxed?

The problem with the policy is that as a percent of income, capital gains is a very small % for the vast majority of Americans. If you make 5% on $100,000 in investments it's still only $5,000 a year. It's nothing in the scheme of things. Someone with $100,000 in savings isn't going to flinch at saving a couple thousand dollars a year. Someone with $15,000 really doesn't benefit from their $2 in savings.

The real winners from this policy are the rich.

 

[lotus503]

It's not income, it's gain and as such shouldn't be taxed.

You're not taxed on the gain when you sell a house (thank you Bush!!! You ROCK!), why should other gains be taxed?

Wrong you are not taxed up to 500k on a primary residence.

1. if you sell an investment property your taxed unless its 1031
2. If you sell a primary residence for a million and took profit above 500k threshold your
taxed on it.

the definition of income includes investments

 

[piasabird]

Well I make interest income and grossed about $51k last year counting myself and my wife. However, I did not pay no taxes for that. All the stocks are in my IRA.

The Apple stock is doing great so I never sell it.

The measley amount of interest income I make is rediculous. I dont think I have ever made over $100 in interest on a bank account. It is a waste of a tax law for people making less than 100k-250k per year. Any intelligent person will be putting money into some kind of investment like a house or a car or whatever they need like you IRA or whatever. In fact I pay more money in interest most of the time. You ever look at how much you pay in interest every year on a house?

 

[lotus503]

Well I make interest income and grossed about $51k last year counting myself and my wife. However, I did not pay no taxes for that. All the stocks are in my IRA.

The Apple stock is doing great so I never sell it.

Yet this year I will take a short term capital gain by caching in stock options and it will be taxed as income. If I wanted to pay the exercise price and sit for a year I could claim Long term gain. but them I wouldn't be able to use the cash now for other investments.

I think if my investments are taxed as income so should Long term gains.

 

[spidey07]

Yet this year I will take a short term capital gain by caching in stock options and it will be taxed as income. If I wanted to pay the exercise price and sit for a year I could claim Long term gain. but them I wouldn't be able to use the cash now for other investments.

I think if my investments are taxed as income so should Long term gains.

Why not just do a sell to cover to minimize tax hit and maximize future gains?

The tax structure is to encourage you to invest, you're doing the opposite of what the incentives are.