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White House considering tax incentive for more Americans to buy stocks, sources say
CNBC via MSN ^ | 2/14/20 | Kayla Tausche

Posted on 02/15/2020 2:14:37 PM PST by Libloather

WASHINGTON - As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions.

The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one scenario, a household earning up to $200,000 could invest $10,000 tax-free, although officials noted these numbers are fluid.

"Nothing's ruled out," said one senior administration official. "Nothing's been ruled in, either."

**SNIP**

The tax break, if enacted, would represent "a pretty substantial amount of money for people" to have for retirement, according to Stephen Moore, economist at the conservative Heritage Foundation and close confidante of the White House.

"That's the type of thing that would expand ownership," Moore tells CNBC.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: 401k; america; badideas; bubble; cnbc; incometaxes; investment; ira; market; msnbc; nbc; nobrainscollectively; socialsecurity; stockmarket; stocks; taxcutsandjobsact; taxes; taxreform; tcja; thefed
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To: pfony1

Agreed.


41 posted on 02/15/2020 3:46:38 PM PST by Chgogal (Never underestimate the stupidity of a DummycRAT voter. Proof: California, New York, Illinois.)
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To: Libloather
Maybe it's a way to change people's opinions away from socialism and towards the feeling that they own a piece of these corporations that are being demonized by the MSM.

This would be another way for people to understand how socialism takes away things they own, once they own stock.

-PJ

42 posted on 02/15/2020 3:50:09 PM PST by Political Junkie Too (Freedom of the press is the People's right to publish, not CNN's right to the 1st question.)
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To: DesertRhino
For sure...

A friend with a very ordinary income but also a 401k said he was able to take $30,000 out of the market to buy a house and still had a shi*load left...and he thanked President Trump for it.

43 posted on 02/15/2020 3:51:33 PM PST by Sacajaweau
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To: plain talk

We’re patient....2021 is soon enough....when we have BOTH houses and the Presidency.


44 posted on 02/15/2020 3:52:49 PM PST by Sacajaweau
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To: Brian Griffin
This tax cut nonsense needs to stop.

We are running huge deficits.

This entitlement BS needs to stop. Social Security actually needs to be pared back to who earned it; disability for those who paid into the system. Welfare, ALL THAT CRAP needs to pared back to Americans in need and NOT for non-citizens for whatever reason.

THAT would be a good start.

45 posted on 02/15/2020 4:12:59 PM PST by VeniVidiVici (Ban Carbon Dioxide! It's twice as bad as Carbon Monoxide!!!)
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To: Raycpa
Basically a Roth without having earned income limits.

Exactly. Amen!

46 posted on 02/15/2020 4:30:16 PM PST by upchuck (Mayor Pete is not running to win. He's running to mainstream homosexuality. ~ Cowboy Bob)
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To: Libloather

To the left, “stocks” is code word for rich and the upper 10%.

Expect “Trump only cares about rich people” and other permutations to be repeated ad nauseum.


47 posted on 02/15/2020 4:31:10 PM PST by SeekAndFind (look at Michigan, it will)
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To: daler

It is absolutely a spending problem.


48 posted on 02/15/2020 4:44:41 PM PST by Crucial
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To: zeestephen
You cherry picked the year.

Uh, the poster was talking about records so I picked the (recent) record year.

Do you agree that current revenue collections aren't close to the record on a normalized basis?

49 posted on 02/15/2020 6:23:24 PM PST by semimojo
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To: Brian Griffin

We’re way beyond doing anything about the debt. Think about it. The US is in debt Trillions of dollars. There is no such thing as a Trillion dollars much less $15T. Might as well enjoy life in this economy.


50 posted on 02/15/2020 6:23:35 PM PST by abbastanza
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To: daler
“We are running huge deficits.” And setting new records in tax revenues. Seems to be a spending problem.

I thought that too, so I decided to look it up a couple weeks ago. The Trump tax cuts were passed December 22, 2017. The first year implemented was 2018. Here are the federal income tax revenues:

2017 $3.32 Trillion
2018 $3.33 Trillion
2019 $3.46 Trillion
2020 $3.71 Trillion (estimated)

I agree we do have a spending problem, but the income tax breaks did not produce as advertised.

51 posted on 02/15/2020 6:52:10 PM PST by Go Gordon (I gave my dog Grady a last name - Trump - because he loves tweets.)
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To: KarlInOhio
I vote no on this. I don't like the "do a trick, get a cookie" sections of the tax code whether it is for investing in stock or putting up solar panels. Remove social engineering from the tax code.

Agreed, doing so will only bring upon a huge bubble that when it bursts, look out. Let's stay the course. It's working better than the rest of the world.

52 posted on 02/15/2020 6:53:50 PM PST by Go Gordon (I gave my dog Grady a last name - Trump - because he loves tweets.)
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To: Libloather

A double down on mal-investment. The collapse is going to be spectacular.


53 posted on 02/15/2020 7:39:15 PM PST by Poison Pill
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To: Libloather

Better to use a small percentage of incoming SS money to buy stocks, which I suspect would take the heat off that account going broke.

It would be interesting to see some stats if the government invested, say 5% or even 1% of SS receipts into the market in the last 10 or 20 years. Pick any number. I’ll warrant SS would have been in a lot better shape by now.


54 posted on 02/15/2020 8:26:59 PM PST by Oatka
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To: Oatka

Buy stocks with Social Security receipts?
I would have grave concerns if the Federal Government did that.


55 posted on 02/15/2020 8:33:34 PM PST by Repeal The 17th (Get out of the matrix and get a real life)
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To: semimojo
Re: “Uh, the poster was talking about records so I picked the (recent) record year.”

True. But, you should have pointed out that 2000 has been exceeded only one time in the last 75 years - in 1945, when we still had wage and price controls, and the war ended.

Personally, I see no value in finding the ratio between federal tax revenues and GDP.

Close to one third of tax revenues come from state and local taxes. Right now, I'm staring at a total tax revenue chart, and the tax percentage of GDP in 2008 (first year of the Great Recession) is equal to the tax percentage in 2016, eight years into the recovery. How does that add to our understanding about anything?

However, I do think it is helpful to see the inflation adjusted per capita GDP compared to inflation adjusted per capita tax revenue and per capita government expenditures. I used to make my own charts for those data ratios back in the 1990s when I was day trading.

Finally, it is never obvious on these charts if Social Security and Medicare taxes are included or not. That's important, because those revenues are NOT invested. They are instantly borrowed and spent by other federal agencies.

56 posted on 02/15/2020 11:53:12 PM PST by zeestephen
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To: Libloather

Bookmark


57 posted on 02/15/2020 11:55:11 PM PST by BunnySlippers (I love BULL MARKETS!)
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To: livius

One exception is Ally Bank but it aint much... less than 2% on Demand Notes for balances of 50K or more.


58 posted on 02/16/2020 12:24:31 AM PST by equaviator (There's nothing like the universe to bring you down to earth.)
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To: Brian Griffin

“This tax cut nonsense needs to stop. We are running huge deficits.”

Tax cuts have increased tax revenues as expected.

Increases in taxes only slows the economy. Why would you want to harm the economy and take in less taxes if you want more taxes?

You people really need to take a course in economics and common sense.


59 posted on 02/16/2020 2:16:42 AM PST by CodeToad (Arm Up! They Have!)
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To: Brian Griffin

“It’s not any government’s job to enrich Wall Street.”

How is buying stocks enriching Wall Street? It enriches the stockholder who buys the stock. It is distributing wealth to every American who buys stock.

Why do you want all the wealth held by a few private holders??

What are you, a liberal who wants communism where only the powerful have the wealth?


60 posted on 02/16/2020 2:19:01 AM PST by CodeToad (Arm Up! They Have!)
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