Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(CNBC)   GOP: "But how will we pay for it?" Biden: "Call"   (cnbc.com) divider line
    More: Interesting, Dow Jones Industrial Average, Capital gains tax in the United States, higher capital gains taxes, Taxation, U.S stocks, Dow Jones & Company, Bloomberg News, Derivative  
•       •       •

5514 clicks; posted to Politics » on 22 Apr 2021 at 4:16 PM (2 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



162 Comments     (+0 »)
View Voting Results: Smartest and Funniest


Oldest | « | 1 | 2 | 3 | 4 | » | Newest | Show all

 
2021-04-22 2:54:15 PM  
   I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.
 
2021-04-22 2:54:57 PM  
I've looked absolutely everywhere, and I just can't seem to find any pity for the rich who will be effected by this.  Maybe if they played some sad piano music over footage of Jeff Bezos sitting dejectedly on a park bench in the pouring rain.  That might help me find some.
 
2021-04-22 3:14:12 PM  
Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

OK, I'll straight-up confess my ignorance here.

So, capital gains are gains on investments by private individuals, then?  Why the hell isn't that already covered under individual income tax?  And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?
 
2021-04-22 3:26:09 PM  
Fark user imageView Full Size


OH NO HOW WILL WE EVER RECOVER?!?!?!?
 
2021-04-22 3:51:46 PM  
I'm starting to like this Biden fella.
 
2021-04-22 3:53:46 PM  

xanadian: Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

OK, I'll straight-up confess my ignorance here.

So, capital gains are gains on investments by private individuals, then?  Why the hell isn't that already covered under individual income tax?  And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?


Any legal entity can own things that earn capital gains, not just individuals.

It needs to be taxed directly (and at a higher rate than actual income taxes, imo). If you don't tax it at the earning, it'll never be taxed. You could form an LLC, buy stocks in its name, and have that LLC pay all your bills as "expenses", eg. Then neither you nor the LLC paid taxes
 
2021-04-22 3:56:13 PM  

NateAsbestos: xanadian: Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

OK, I'll straight-up confess my ignorance here.

So, capital gains are gains on investments by private individuals, then?  Why the hell isn't that already covered under individual income tax?  And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?

Any legal entity can own things that earn capital gains, not just individuals.

It needs to be taxed directly (and at a higher rate than actual income taxes, imo). If you don't tax it at the earning, it'll never be taxed. You could form an LLC, buy stocks in its name, and have that LLC pay all your bills as "expenses", eg. Then neither you nor the LLC paid taxes


o.O

Well, this would be reason #418 why I'm not a millionaire, I guess....
 
2021-04-22 3:56:23 PM  

dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.


There's an important difference. You just have to look carefully in order to spot it.
Fark user imageView Full Size
 
2021-04-22 4:02:00 PM  
Proposing and passing are two seperate animals.
 
2021-04-22 4:18:26 PM  
"OH NO! Buh buh buh but the line goes down!"

I cannot even begin to bring myself to care.
 
2021-04-22 4:18:57 PM  
Everyone supports taxing the rich more, and raising the capital gains tax except rapepublicans in Congress and those playing the redneck retirement plan lotto
 
2021-04-22 4:19:42 PM  
Uh, is "fark 'em" considered presidential?

I'd really like the president to take the "fark 'em" platform.
 
2021-04-22 4:20:03 PM  

dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.


Because rich people are better than you
 
2021-04-22 4:20:05 PM  

NateAsbestos: You could form an LLC, buy stocks in its name, and have that LLC pay all your bills as "expenses", eg. Then neither you nor the LLC paid taxes


WARNING!!!
DO NOT TRY THIS CRAP WITHOUT CONSULTING BOTH A TAX ATTORNEY AND A LICENSED ACCOUNTANT!!!



I seem to recall a few people trying that, and being prosecuted over thereby crossing the line from "tax avoidance" (which is legal) into "tax evasion" (which is not). Compare to indictment of Paul Manafort.

xanadian: Well, this would be reason #418 why I'm not a millionaire, I guess....


It might also be reason #1 why you're not yet in prison.
 
2021-04-22 4:20:50 PM  
Fark user imageView Full Size
 
2021-04-22 4:21:38 PM  
Good for the proposal. Too bad that Democrats will block it by refusing to eliminate the filibuster.

/call
 
2021-04-22 4:21:50 PM  
Hell, they could all get spooked by their shadows and the market will drop.
 
2021-04-22 4:21:59 PM  

dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.


Would you kindly ?
 
2021-04-22 4:22:28 PM  
"Biden's proposal effectively doubles the capital gains tax rate on $1 million income earners," said Jack Ablin, Cresset Capital Management's founding partner and CIO.

anyone else...stirring?
 
2021-04-22 4:22:51 PM  

Psychopusher: I've looked absolutely everywhere, and I just can't seem to find any pity for the rich who will be effected by this.  Maybe if they played some sad piano music over footage of Jeff Bezos sitting dejectedly on a park bench in the pouring rain.  That might help me find some.


I would explain it to you... but everyone will point and laugh at me. And I'm feeling fragile today.
 
2021-04-22 4:23:03 PM  
Yes, but the important thing is that he didn't introduce this within the first week of his presidency and it's too low.  Bernie would have been better on both of those things because Mayo Cheat worked at McKinsey.
 
2021-04-22 4:23:22 PM  

xanadian: o.O

Well, this would be reason #418 why I'm not a millionaire, I guess....


I mean, my scheme the is also probably illegal. I hope so anyway.

But the distinction definitely needs to be made between "money earned through labor" and "money earned through dividends/interest/whatever."

The former is much more important overall. I think I could be convinced that it shouldn't be taxed at all, and capital gains taxes can make up for it

/Also not a millionaire
 
2021-04-22 4:25:41 PM  
"Biden's proposal effectively doubles the capital gains tax rate on $1 million income earners,"

Oh boo-farking-hoo, let me get my Planck-length violin.
 
2021-04-22 4:26:19 PM  

abb3w: WARNING!!!
DO NOT TRY THIS CRAP WITHOUT CONSULTING BOTH A TAX ATTORNEY AND A LICENSED ACCOUNTANT!!!


I'd say just don't try it at all
 
2021-04-22 4:26:35 PM  
"I must sell some of my stonks because taxes will decrease their total profits, all because my yearly income is higher than some people's lifetime income"

Cry me f*ckin river, ya dipsh*ts.
 
2021-04-22 4:26:39 PM  

Destructor: Psychopusher: I've looked absolutely everywhere, and I just can't seem to find any pity for the rich who will be effected by this.  Maybe if they played some sad piano music over footage of Jeff Bezos sitting dejectedly on a park bench in the pouring rain.  That might help me find some.

I would explain it to you... but everyone will point and laugh at me. And I'm feeling fragile today.


Hey, look everyone! He's fragile! HA HA!
i.pinimg.comView Full Size
 
2021-04-22 4:28:31 PM  

dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.


Frye.rich.gif
 
2021-04-22 4:28:37 PM  

xanadian: So, capital gains are gains on investments by private individuals, then? Why the hell isn't that already covered under individual income tax? And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?


Because the capitalists have manipulated the tax code to favor capital over labor?

They also need to close the carried interest loophole which allows investment managers to take their pay as if it were capital gains and pay the lower capital gains tax rates. "[T]his quirk in the tax law allows some of the richest workers in the country to pay tax on their labor income at a low rate."
 
2021-04-22 4:30:10 PM  
"That's a sizable cost increase to long-term investors. Expect selling this year if investors sense the proposal has a chance of becoming law next year."

As an investor, good.  I'm not retiring for 20 years and I'm paying these stupid high stock prices.  I regularly see people my age cheering how high the stock market is.  It's a stupid position for anyone under 60 to take.
 
2021-04-22 4:30:16 PM  

TheDarkSaintOfGin: dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.

Frye.rich.gif


i.redd.itView Full Size
 
2021-04-22 4:30:28 PM  

dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.


Funny part is that the original income tax did not tax wages, it only taxed rich people making money off of money and businesses.
 
2021-04-22 4:31:17 PM  
Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

That is pretty badass.
 
2021-04-22 4:31:52 PM  
Well, the warning shot has been fired.

"Increase taxes on capital gains, and rich people will crash the economy!"

The plan to do so is now probably dead.  If the economy tanks before the midterms, the Democrats will get slaughtered.  So they aren't going to do that.
 
2021-04-22 4:33:26 PM  

jack_o_the_hills: TheDarkSaintOfGin: dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.

Frye.rich.gif

[i.redd.it image 330x324]


Fark user imageView Full Size
 
2021-04-22 4:33:27 PM  

Rapmaster2000: "That's a sizable cost increase to long-term investors. Expect selling this year if investors sense the proposal has a chance of becoming law next year."

As an investor, good.  I'm not retiring for 20 years and I'm paying these stupid high stock prices.  I regularly see people my age cheering how high the stock market is.  It's a stupid position for anyone under 60 to take.


The most money is made by holding and not selling. You dont want to i terupt the compounding machi e.
 
2021-04-22 4:33:57 PM  

NateAsbestos: xanadian: Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

OK, I'll straight-up confess my ignorance here.

So, capital gains are gains on investments by private individuals, then?  Why the hell isn't that already covered under individual income tax?  And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?

Any legal entity can own things that earn capital gains, not just individuals.

It needs to be taxed directly (and at a higher rate than actual income taxes, imo). If you don't tax it at the earning, it'll never be taxed. You could form an LLC, buy stocks in its name, and have that LLC pay all your bills as "expenses", eg. Then neither you nor the LLC paid taxes


The law hasnt worked like that since jfk.
 
2021-04-22 4:34:22 PM  

xanadian: Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

OK, I'll straight-up confess my ignorance here.

So, capital gains are gains on investments by private individuals, then?  Why the hell isn't that already covered under individual income tax?  And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?


Capital gains are already taxed, and at a higher % than regular income for individuals.  But I'll admit my ignorance in how this affects businesses.
 
2021-04-22 4:34:31 PM  
He has to deliver. This is the one thing he promised Bernie during the debates.
 
2021-04-22 4:34:34 PM  

jack_o_the_hills: [Fark user image image 500x771]


Needs a "forthwith" on the end.
 
2021-04-22 4:35:14 PM  

Geotpf: Well, the warning shot has been fired.

"Increase taxes on capital gains, and rich people will crash the economy!"

The plan to do so is now probably dead.  If the economy tanks before the midterms, the Democrats will get slaughtered.  So they aren't going to do that.


Let them crash the economy. There is no economy without workers.

And the people can always eat them.
 
2021-04-22 4:35:58 PM  

jack_o_the_hills: TheDarkSaintOfGin: dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.

Frye.rich.gif

[i.redd.it image 330x324]


That'll show those poor!
Youtube K_LvRPX0rGY
 
2021-04-22 4:36:10 PM  
It absolutely blows my f*ckin mind that rich people keep saying sh*t like "if you tax my money, I will just make less of it so you can't collect those taxes" as if that doesn't prove beyond a shadow of a doubt that they already have more money than they will ever need.
 
2021-04-22 4:36:24 PM  
well, the original reason that taxes were way low on investments was because there was a great risk of loss, however, if the government is just gonna bail out the stonk market every time it goes down a few percent, maybe it is time to raise the rate.
 
2021-04-22 4:36:35 PM  

EnderWiggnz: Geotpf: Well, the warning shot has been fired.

"Increase taxes on capital gains, and rich people will crash the economy!"

The plan to do so is now probably dead.  If the economy tanks before the midterms, the Democrats will get slaughtered.  So they aren't going to do that.

Let them crash the economy. There is no economy without workers.

And the people can always eat them.


The people can also vote for Republicans, which they will do if the economy crashes.
 
2021-04-22 4:37:27 PM  

dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.


To encourage investment.  The idea is that you park your extra money as capital because you can pay less taxes if you make money off that investment.  It becomes ridiculous when people are making most, if not all, of their income off investment, but if you are doing well, and have some extra cash just sitting there, the government would rather you use it to goose the economy than just shove it in a mattress.  So, they essentially offer you a deal - use that money and we will charge you less than usual when you profit from it.  It isn't a bad idea in theory - you have an incentive to put the money to use, and you will see more of the profit if you do.  The problem, like I said, is that there are people who can derive their entire income through this and pay very low taxes, which lets them accumulate more money and create a positive feedback loop.  It would probably be better to limit the amount that gets taxed lower and then everything else gets the full monty - like say the first $50K is at the lower rate, but everything above that is at full rate.
 
2021-04-22 4:37:33 PM  
TFA was a bunch of BS.

Growth stocks, which could come under selling pressure on higher capital gains taxes, led the intraday decline on Thursday with shares of Tesla and Amazon falling 3.3% and 1.6% respectively. The iShares S&P 500 Growth ETF fell 1%, more than its value counterpart.

TFA implies that investors immediately dump stocks that might be affected by this proposed change.  It's not even a real change.  This is in the "rumor" category of "Buy on rumor, sell on news."
 
2021-04-22 4:40:40 PM  
"Biden's proposal effectively doubles the capital gains tax rate on $1 million income earners," said Jack Ablin, Cresset Capital Management's founding partner and CIO. "That's a sizable cost increase to long-term investors rich people making over a million bucks a year.

lol... go fark yourself, Jack Ablin.
 
2021-04-22 4:41:22 PM  

xanadian: Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

OK, I'll straight-up confess my ignorance here.

So, capital gains are gains on investments by private individuals, then?  Why the hell isn't that already covered under individual income tax?  And how should that impact corporations/LLCs/etc so badly that it causes the stock market to get all antsy?


Because privatize the gains, socialise the losses, that is the Republican way. You get taxed on your gains at a lower rate, even if you are super rich. If you have losses, you get to deduct the whole thing right off the top.

Note that this would only kick in starting with the second million of INCOME, the first million would still be taxed at 20%.
 
2021-04-22 4:41:23 PM  
Good piece and shows how Republicans are against paying for either part of the Biden plan:

Republicans Release Draft Version Of Plan To Vote Against Biden Infrastructure Package

No Way To Pay?
The counterproposal echoes previous Republican efforts by taking any way to pay for infrastructure spending off the table.

The section of the document devoted to pay-fors is skimpy on details, but GOP senators commit themselves to two principles:

The cost of infrastructure legislation must be covered to avoid "increasing the debt."
Trump's tax cuts must be preserved, specifically the state and local tax deduction.
Those two commitments foreclose virtually any way to pay for the legislation.

In the first one, Republicans say that they will reject any attempt to deficit-finance infrastructure. Therefore, the government must find new revenue sources to pay for the proposal.

But in the second, GOP senators say they're against changing revisions to the tax code signed into law during the Trump.

The only way out, then, is to "repurpose unused federal spending," or a tax on electric vehicle usage that is mentioned in the document. It comes as Republicans attempt to stoke the flames of fear around the national debt, with Sen. Rick Scott (R-FL) suggesting this week that Republicans should use the filibuster to force a debate around the debt ceiling. The debt ceiling has been suspended for two years, but that ends on July 31. Congress will then need to either raise the ceiling or suspend it again - unless the GOP is willing to make good on Scott's threat of default.

What Biden Has Proposed
The Biden plan - expected, in its full, multi-part form - to clock in around $4 trillion according to the New York Times, will include the American Jobs Plan Biden has previously described. It focuses on physical infrastructure and would be funded by a tax hike on corporations, something Republicans adamantly oppose.

The second portion, the "human infrastructure" piece, would cover everything from universal pre-kindergarten to a national paid leave program. To pay for that chunk, Biden proposes various methods of taxing the wealthiest Americans, including raising taxes on capital gains and raising the top marginal tax rate.
 
2021-04-22 4:42:47 PM  

phalamir: dickfreckle: I will ever understand why capital gains aren't taxed like the money from the sweat of your brow.

To encourage investment.  The idea is that you park your extra money as capital because you can pay less taxes if you make money off that investment.  It becomes ridiculous when people are making most, if not all, of their income off investment, but if you are doing well, and have some extra cash just sitting there, the government would rather you use it to goose the economy than just shove it in a mattress.  So, they essentially offer you a deal - use that money and we will charge you less than usual when you profit from it.  It isn't a bad idea in theory - you have an incentive to put the money to use, and you will see more of the profit if you do.  The problem, like I said, is that there are people who can derive their entire income through this and pay very low taxes, which lets them accumulate more money and create a positive feedback loop.  It would probably be better to limit the amount that gets taxed lower and then everything else gets the full monty - like say the first $50K is at the lower rate, but everything above that is at full rate.


We do have that.  The tiers are 0%, 15%, and 20%.  The problem is that 20% is just too low for our wildly imbalanced wealth.  https://en.wikipedia.org/wik​i/Capital_​gains_tax_in_the_United_States
 
Displayed 50 of 162 comments


Oldest | « | 1 | 2 | 3 | 4 | » | Newest | Show all


View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking





On Twitter



  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.