2
0

A 43.4% Capital Gains Tax? Make that more than 55% if you live in New York or California.


 invite response                
2021 Apr 23, 3:14pm   556 views  11 comments

by Eric Holder   ➕follow (5)   💰tip   ignore  

The one consistent theme of the Biden Presidency so far is that he nearly always chooses to side with the Democratic left. So it was again on Thursday as Biden officials leaked that they will soon propose raising the federal tax on capital gains to 43.4% from a top rate of 23.8% today.

The midday leak to the Biden-sympathetic Bloomberg News managed to tank stocks, with the S&P 500 falling the most in more than a month. Treasury yields also fell on the news, as investors discounted the prospects for growth. Nothing like higher taxes to take some of the bloom off the “Biden boom,” as Democrats are now calling the post-Covid economic recovery.

The leakers told Bloomberg that Mr. Biden will tax capital gains for taxpayers who earn more than $1 million at the personal income tax rate, which he also wants to raise to 39.6% from 37%. Add the 3.8% ObamaCare tax on investment, and you get to 43.4%. And that’s merely the federal rate. Add 13.3% in California and 11.85% in New York (plus 3.88% in New York City), which also tax capital gains as regular income, and you are heading toward the 60% rate range.

Keep in mind this is on the sale of gains that are often inflated as assets are held for years without adjustment for inflation. Oh, and Mr. Biden also wants to eliminate the step-up in basis on capital gains that accrues at death. All of this would add up to the highest rate on capital income since before the Steiger capital-gains tax cut of 1978.

We’ll have more to say on the Biden tax proposals in the days ahead, and stocks may bounce back as corporate earnings soar. But the lesson that investors should have learned by now is that Bernie Sanders was right when he predicted that Joe Biden would be the most left-wing President since FDR. Moderate Joe was always a mirage.


https://www.wsj.com/articles/a-43-4-capital-gains-tax-11619132343

Comments 1 - 11 of 11        Search these comments

1   FarmersWon   2021 Apr 23, 3:32pm  

Upper middle class : Soak us, we will just cry.
Rich : Let me buy sovereign island for myself.

Biden can instead tax Chinese imports to fund some sensible but mostly lefty ideas.
Trump had it right on many fronts and people will miss his policies, He could have survived lefty onslaught using COVID if were not such potty mouthed.
2   clambo   2021 Apr 23, 4:01pm  

The insane ideas that Biden has are the products of the addled mind of a senile old fool with dementia.

Trump won the election, but the fix was in with fraud by mail voting.
3   RC2006   2021 Apr 23, 4:46pm  

This will trigger crash sell off before it takes effect.
4   mell   2021 Apr 23, 4:47pm  

Yeah but they will settle somewhere around 30% or below. They won't get these high rates through. But didn't expect anything else from the marxist leftoids.
5   Ceffer   2021 Apr 23, 6:03pm  

Remember, the 'Big Guy' gets his ten percent.
6   Patrick   2021 Apr 23, 6:05pm  

Given that Biden was put in office by oligarchs (through mail-in ballot fraud), I fully expect those oligarchs to be exempted from any significant tax increase.
7   FortwayeAsFuckJoeBiden   2021 Apr 24, 8:30am  

clambo says
The insane ideas that Biden has are the products of the addled mind of a senile old fool with dementia.

Trump won the election, but the fix was in with fraud by mail voting.


Biden is a puppet, he has no ideas of his own.
8   mell   2021 Apr 24, 8:40am  

ThreeBays says
Serious question, does anyone on this forum have an AGI over $1M? I would bet 10 of the average visitors added together make less.


It's a valid question, we're not there unless there are a lot of stock gains sold. 1MM is not that much but I would be ok with this proposal if they would remove all the other tax raises and penalties over the years such as obummercare which kick in as soon as combined AGI of 200k or 250k and not raise taxes at all for those below 1MM. But they don't they keep raising taxes for everyone except for their poorest dependent voter base so they will widen the gap more and more by pushing middle and upper middle and upper class down. Lastly they also create massive inflation via deficit spending so the assets of the uber wealthy appreciate beyond their added cap gains penalty. Of course it's not needed to mention that they misallocate those taxes for illegal aliens, useless govt "jobs" and bailing out the blue states. Asshoes!
9   clambo   2021 Apr 24, 3:43pm  

Threebays,

The problem is not today but later on.

If Biden succeeds, they will lower the “rich” income to $500,000 or $250,000.

I’m not there but in the future I might decide “I can’t take it with me” and my IRAs, annuity, etc can become a tax target because as of today I can withdraw $200,000+/year and not run out.
10   Booger   2021 Apr 24, 3:46pm  

ThreeBays says
Serious question, does anyone on this forum have an AGI over $1M? I would bet 10 of the average visitors added together make less.


More like 4 of us added together.
11   Patrick   2021 Jun 4, 6:02pm  

https://www.theepochtimes.com/mkt_breakingnews/taxpayers-fleeing-california-take-8-8-billion-in-gross-income-to-other-states_3844818.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Taxpayers Fleeing California Take $8.8 Billion In Gross Income to Other States
BY TOM OZIMEK June 4, 2021

California, with its relatively large tax burden compared to other states, has seen a taxpayer exodus in recent years and, along with it, billions in taxable gross income.


$8.8B is a lot, but I calculate that it's only about 1% of total California household income.

Still, it's not nothing, and I'm glad California is losing revenue which they use to undermine America.

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions