Democrats - you'd better be careful about how you approach a capital gains tax increase

[Moonbeam]

You know what - you're right. I didn't look at this properly.

SSI isn't taxable so a retiree or retired couple collecting SS and $10,000 in dividends wouldn't owe any taxes on the dividend. So that example was bad.

Wouldn't apply until the retiree/retired couple exceeds $38,500/$77,200 a year in dividends.

So I guess maybe I was barking at the moon a little there.

Well the remarkable thing to me is that you have re-evaluated your position. I find that in itself to be rather remarkable.

 

[IronWing]

It's possible, I guess, that my idea of dividend stocks as part of a portfolio is old fashioned.

My father and all of his friends were heavily invested in income producing stocks. I remember them discussing the topic frequently. I just assumed successful retirees would have some of their portfolio structured similarly.

I'm personally invested in dividend stocks to a certain degree as well. I would never consider not having them in my portfolio.

I don't really want to continue this tangent but I disagree.

His position was "tax all capital gains as income". That's not a compromise. That's an absolute.

I offered "Ok, then tax everyone but retirees as income". That's a compromise.

It is a compromise though. A senior collecting dividends of modest value would likely pay zero to modest taxes depending on their total income level, just like anyone else. Seniors collecting dividends of very high value would pay a higher tax rate on that income. The current capital gains tax system taxes poor and rich seniors at the same rate.

 

[1prophet]

GOP politicians will fight it to their last breath, bet on that. Their mega rich donors won't pay for anything less.

And many rich democrat liberals will be more than happy (privately of course) to have the republicans do the dirty work for them in public when it comes to loopholes, tax cuts, and any other laws or policies that also protectsw their wealth while publicly virtue signaling Warren Buffet style how the rich should pay more taxes .

 

[Maxima1]

GOP politicians will fight it to their last breath, bet on that. Their mega rich donors won't pay for anything less.

You know why people don’t like liberals? Because they lose. If liberals are so fucking smart, how come they lose so goddamn always?

 

[SMOGZINN]

With topics like guaranteed annual income, reparations, and totally unrealistic green initiatives (ahem AOC) being floated about by the Dems, I think an increase in the capital gains tax is far less likely to garner voter opposition.

We talk about these things because they are the solutions that have been proposed. Like it or not we have to do something about the environment if we want to survive. We need to address the growing economic instability of the middle class. No one is seriously talking about reparations, that is a wet dream issue Fox news invented.
As soon a the Republicans come up with some solutions we will talk about them. But so far all the Republicans have done is criticize the solutions other people has suggested. Notice how the Republicans have not suggested a single serious solution to any of these problems.

You know why people don’t like liberals? Because they lose. If liberals are so fucking smart, how come they lose so goddamn always?

Because they are also ethical.

 

[glenn1]

So all the folks saying tax cap gains as income, would you index the gain for inflation or would folks just be SOL?

 

[DAPUNISHER]

You know why people don’t like liberals? Because they lose. If liberals are so fucking smart, how come they lose so goddamn always?

You forgot the quotes, that is from the opening scene of newsroom. Otherwise, you are plagiarizing, which is not cool.

 

[Jhhnn]

So all the folks saying tax cap gains as income, would you index the gain for inflation or would folks just be SOL?

There's no index for inflation when people make withdrawals from 401k's & IRA's.

 

[MooseNSquirrel]

So riddle me this - in the town I live in seniors get their property taxes cut in half (which I support). Why is that ok but a senior capital gains tax rate isn't?

edit - its actually more that 1/2. I pay almost $4000 a year in property tax; the senior couple I bought the house from paid $1200.

Its not ok for some folks to pay tax rates based on age. How incredibly unfair and burdensome for young folks. Its why Prop 13 in CA is such a horrible idea (well amongst many other reasons).

 

[glenn1]

There's no index for inflation when people make withdrawals from 401k's & IRA's.

Those are typically tax deferred accounts where the income put into it was not taxed in the first place. Or Roth accounts where the contribution was post-tax dollars thus growth isn’t taxed upon distribution.

Either is quite a different situation from someone who bought an asset with after-tax dollars that wasn’t in an IRA. An asset which might not appreciate above the rate of inflation. Thus charging “capital gains” on that inflation tracking growth creates a negative real return situation for them. Inflation is basically why capital gains receive a differential tax treatment now, and treating it as a regular income without indexing for inflation would never fly.

 

[hal2kilo]

You know why people don’t like liberals? Because they lose. If liberals are so fucking smart, how come they lose so goddamn always?

“Anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that 'my ignorance is just as good as your knowledge.'”
― Isaac Asimov

 

[JSt0rm]

After that retarded tax bill now the dems need to be careful? Lol

 

[Jhhnn]

Those are typically tax deferred accounts where the income put into it was not taxed in the first place. Or Roth accounts where the contribution was post-tax dollars thus growth isn’t taxed upon distribution.

Either is quite a different situation from someone who bought an asset with after-tax dollars that wasn’t in an IRA. An asset which might not appreciate above the rate of inflation. Thus charging “capital gains” on that inflation tracking growth creates a negative real return situation for them. Inflation is basically why capital gains receive a differential tax treatment now, and treating it as a regular income without indexing for inflation would never fly.

Investment entails risks. Inflation is one of them.