Would you support this type of change for taxing capital gains?

[ivwshane]

As I'm sure you know, a lot of wealthy people make their money via capital gains and therefore they are taxed at the capital gain rate as opposed to the normal income rate.

We could simply raise the CG rate but then normal folks who hold on to stocks and who typically cash out when they retire would end up paying a good amount of taxes on it.

But what if CG was taxed at the normal income rate when things like stocks are held for less than two years (which would cover those who make their normal income from CG) and then anything after that would be taxed at the normal GC rate?

Obviously this isn't a silver bullet fix but it could address the current "abuse" imo.

 

[Matthiasa]

As it stands the current cutoff for short term capital gains is one year. Your proposal is to double that time period?

 

[ivwshane]

As it stands the current cutoff for short term capital gains is one year. Your proposal is to double that time period?

Yes. Do you think it should be longer?

 

[ctbaars]

Will make very little difference. There are those who buy and sell and those who hold. You would need to make it a minimum of 5 years perhaps even 10. One year is perfect.

 

[glenn1]

Will make very little difference. There are those who buy and sell and those who hold. You would need to make it a minimum of 5 years perhaps even 10. One year is perfect.

Agree with this. Indexing cap gains to inflation is the best fix, then you can make the LT holding period 5 or 10 years no problem.

 

[ivwshane]

Will make very little difference. There are those who buy and sell and those who hold. You would need to make it a minimum of 5 years perhaps even 10. One year is perfect.

What?

 

[ivwshane]

Agree with this. Indexing cap gains to inflation is the best fix, then you can make the LT holding period 5 or 10 years no problem.

If I understand you correctly. You would prefer to see long term holdings taxed at a certain percentage x inflation? Would short term then be at the income rate?

 

[senseamp]

What's the societal interest in whether you hold a stock for 2 days or 2 years? Why should we incentivize holding it longer?

 

[nickqt]

Make the capital gains tax progressive so that the longer you hold onto it, the less you pay when you cash out. If you're using it as a retirement plan, then bully for you. If you're gambling, too bad so sad.

 

[Jhhnn]

Please. Very, very few Americans have capital gains as a significant portion of income. That falls into the realm of the affluent & more importantly the wealthy-

The 3 percent of returns with AGI over $200,000 reported 31 percent of AGI and 83 percent of capital gains; the 0.3 percent with AGI over $1,000,000 reported 15 percent of AGI and 61 percent of capital gains. Many more Americans accrue capital gains on corporate shares they hold within tax-deferred employer-sponsored retirement plans, but they do not pay capital gains tax on these gains.

http://www.taxpolicycenter.org/publications/url.cfm?ID=1001201

Tax capital gains the same as earned income & add higher brackets at higher income.

I'm dying to pay a marginal tax rate of 50% on all income above $1M/yr.

 

[rpanic]

Why not tax stock trades instead?

 

[s0me0nesmind1]

Unlike normal income, there is obviously a few brackets that have to be passed before it even reaches the 20% capital gains rate. Whereas (from what I understand) a capital gain is taxed from $1 the same as $20,000... at 20%.

So for some, moving it to an income tax rate would actually be an advantage.

 

[s0me0nesmind1]

Please. Very, very few Americans have capital gains as a significant portion of income. That falls into the realm of the affluent & more importantly the wealthy-



http://www.taxpolicycenter.org/publications/url.cfm?ID=1001201

Tax capital gains the same as earned income & add higher brackets at higher income.

I'm dying to pay a marginal tax rate of 50% on all income above $1M/yr.

Everyone is in favor of paying more when it doesn't apply to them.

Weeeeeeeeee! Let's pay more! But not me. Make those "greedy" mother fuckers pay. But I'm not greedy! But I don't want to give more of my money either!

 

[Jhhnn]

Everyone is in favor of paying more when it doesn't apply to them.

Weeeeeeeeee! Let's pay more! But not me. Make those "greedy" mother fuckers pay. But I'm not greedy! But I don't want to give more of my money either!

Shilling for the Rich, huh?

Lots of boneheads have been doing that for 35 years. Look where it's brought us.

The marginal tax rate for families earning more than $75K/yr is higher than the LTCG rate-

http://taxfoundation.org/article/2015-tax-brackets

Guys like Mitt have tears in their eyes as big as horseturds, I'm tellin' ya.

 

[IronWing]

Taxing all income the same seems simple and fair.

I do like the idea of putting in an inflation adjustment on capital gains to account for long term holdings. If an inflation adjustment were applied to capital gains then it would be reasonable to apply the same inflation adjustment to CDs and other long term instruments and even interest on savings accounts (much harder to document).

 

[ivwshane]

Please. Very, very few Americans have capital gains as a significant portion of income. That falls into the realm of the affluent & more importantly the wealthy-



http://www.taxpolicycenter.org/publications/url.cfm?ID=1001201

Tax capital gains the same as earned income & add higher brackets at higher income.

I'm dying to pay a marginal tax rate of 50% on all income above $1M/yr.

It's my understanding that IRA type accounts will pay the income rate once they pull out the money for retirement. Is that not the case?

 

[nickqt]

Shilling for the Rich, huh?

Lots of boneheads have been doing that for 35 years. Look where it's brought us.

The marginal tax rate for families earning more than $75K/yr is higher than the LTCG rate-

http://taxfoundation.org/article/2015-tax-brackets

Guys like Mitt have tears in their eyes as big as horseturds, I'm tellin' ya.

Poor, poor richest people in the solar system.

They're so, so persecuted, it's frightening!

Just ask 'em!

Occupy basically took most of their stuff because moochers and looters, and, like, Obama didn't extend the Bush tax cuts, so, like, all private enterprise has been appropriated, with the means of production, like, clearly in the hands of the proletariat!!!1!

#Trump/Rmoney2016:ClearlyNotMammonWorshipers

 

[Jhhnn]

Taxing all income the same seems simple and fair.

I do like the idea of putting in an inflation adjustment on capital gains to account for long term holdings. If an inflation adjustment were applied to capital gains then it would be reasonable to apply the same inflation adjustment to CDs and other long term instruments and even interest on savings accounts (much harder to document).

The average rate of return on investment far exceeds inflation.

It's not like minimum wage is indexed against inflation, either.

Is there some reason we should further advantage the haves over the have-nots?

 

[IronWing]

The average rate of return on investment far exceeds inflation.

It's not like minimum wage is indexed against inflation, either.

Is there some reason we should further advantage the haves over the have-nots?

Indexing the minimum wage to inflation works for me. An additional upward adjustment is in order to bring the spending power of the minimum wage back up.

 

[ivwshane]

What's the societal interest in whether you hold a stock for 2 days or 2 years? Why should we incentivize holding it longer?

My understanding is that stocks were created in order for companies to grow by pooling smaller investors who had the hope that a company would grow and investors would get your money back plus the worth of the new growth. Now it seems like the stock market is simply a form of legalized gambling in which the name of the game is to get your money in and out quickly over a short period of time with little to no concern for the long term growth of the company. Companies seem to use it as a tool to inflate their worth or to mask their performance.

 

[Slew Foot]

isnt the average time a stock is held something crazy like 5 seconds? I'd support taxing all income the same, creating new higher taxbrackets in the million+ range, and adding a transaction tax to stock trades.

 

[Zorba]

Everyone is in favor of paying more when it doesn't apply to them.

Weeeeeeeeee! Let's pay more! But not me. Make those "greedy" mother fuckers pay. But I'm not greedy! But I don't want to give more of my money either!

I pay capital gains tax (albeit not as a significant portion of my income).

Tax capital gains the same as earned income & add higher brackets at higher income.

I'm dying to pay a marginal tax rate of 50% on all income above $1M/yr.

I completely agree, all income should be taxed the same.

Really, I am favor of massively simplifying the tax code for individuals. Get rid of all deductions, including standard (except maybe taxes paid to the states/localities and retirement/HSA contributions), all credits, etc. Rebalance the current brackets to make up for the removal of the deductions and credits, so people end up paying the same they are now on average. Let everyone use a 1040ez.

 

[ivwshane]

isnt the average time a stock is held something crazy like 5 seconds? I'd support taxing all income the same, creating new higher taxbrackets in the million+ range, and adding a transaction tax to stock trades.

I've supported creating new tax brackets as well. A transaction tax? Hmm...would it be based on the number of shares or the dollar amount of the trade? It sounds like a good idea but I can't help but think that it would have unintended consequences, how would that affect companies that manage 401k's? If their costs increase it would be passed on which would most likely hurt your average American.

 

[Zorkorist]

Yeah,

Let's fuck capitalism, because government is in trouble.

You can tax and spend all you want. Won't fix a communist, socialist Government.

Freedom. Freedom, fixes Government.

-John

 

[Zorkorist]

Let's pass a balanced budget amendment.

-John