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Bidenís capital gains tax hike could spark a big sell-off in stocks. Hereís what that means for the market
cnbc ^

Posted on 09/21/2020 5:09:54 PM PDT by Red in Blue PA

Democratic presidential nominee Joe Biden’s plan to increase the capital gains tax could lead to a large-scale sell-off of stocks, according to economic analyses.

As part of his $4 trillion tax plan, Biden has proposed increasing the top tax rate for capital gains for the highest earners to 39.6% from 23.8%, the largest real increase in capital gains rates in history. Economic analyses show that capital gains tax hikes cause a burst of stock-selling in advance of the increase, as investors look to lock in the lower existing tax rates before they rise.

A research paper by Tim Dowd, a senior economist at the U.S. Congress Joint Committee on Taxation, and Robert McClelland, a senior fellow at the Urban-Brookings Tax Policy Center, found that the two previous hikes in capital gains taxes lead to a wave of selling.

In 1986, as part of the Reagan tax plan, the top rate for capital gains jumped from 20% in 1986 to 28% in 1987. In the months before the increase, capital gains realizations — or sales of stocks and other assets — surged by 60%. In 2012, as part of the fiscal cliff negotiations, the top rate went from 15% to 23.8%. Again, in the months leading before the change, capital gains realizations and sales jumped, by 40%.

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


TOPICS: Business/Economy; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: 2020; biden; investment; joebiden; kag; maga; market; socialism; stocks; taxes; trump
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1 posted on 09/21/2020 5:09:54 PM PDT by Red in Blue PA
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To: Red in Blue PA

Like FDR - how to ruin the American economy and the livelihood of millions.


2 posted on 09/21/2020 5:14:13 PM PDT by SkyDancer (~ Pilots: Looking Down On People Since 1903 ~)
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To: Red in Blue PA

Complete and utter devastation - the goal.


3 posted on 09/21/2020 5:14:58 PM PDT by wally_bert (Transmission tone, Selm)
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To: Red in Blue PA

The stock market might not believe that Hiden can win, fairly or not.
?


4 posted on 09/21/2020 5:15:12 PM PDT by The Antiyuppie (Wht then small men cast long shadows, then it is very late in the day.)
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To: Red in Blue PA

Right now most people over the 100k income bracket are planning to vote Democrat. Wealthy suburbs are becoming Democrat at a rapid fashion. I think the main reason is because taxes have been reduced for upper class voters since Reagans term. Also the cooperate media is nothing more than Democrat party slime liar filth (as we all know). Most corporate charities give to liberal causes if they are political. I am reevaluating my support for lower taxes for corporate and wealthy persons. The fact that they are becoming left is proof that they are undertaxed. Even the corporate Republicans are just rino and feckless. I say go ahead and tax them. They want socialism than they deserve a good taste of it!


5 posted on 09/21/2020 5:16:26 PM PDT by amnestynone (We are asked by people who do not tolerate us to tolerate the intolerable in the name of tolerance.)
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To: amnestynone

Exactly the hang up in the stimulus bill is over the SALT tax deduction which Nancy badly wanted back for her wealthy friends they started to cry uncle when their taxes went up even the slightest


6 posted on 09/21/2020 5:19:46 PM PDT by Lod881019
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To: amnestynone

Right now most people over the 100k income bracket are planning to vote Democrat.”

Source?


7 posted on 09/21/2020 5:20:33 PM PDT by CheneyClone
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To: amnestynone

“Right now most people over the 100k income bracket are planning to vote Democrat.”

WRONG!


8 posted on 09/21/2020 5:20:57 PM PDT by vis a vis
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To: amnestynone
Every income group over $50k voted for Trump in 2016. 2020 may be different, but in 2016 only those <$50k voted Dem.

https://www.statista.com/statistics/631244/voter-turnout-of-the-exit-polls-of-the-2016-elections-by-income/
9 posted on 09/21/2020 5:23:40 PM PDT by fluffy
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To: amnestynone

Re: Right now most people over the 100k income bracket are planning to vote Democrat.

Not in my family.


10 posted on 09/21/2020 5:23:48 PM PDT by Red in Blue PA (You can vote your way into socialism, but you have to shoot your way out.)
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To: amnestynone

Every single guy I know that makes over 100K is a Republican.


11 posted on 09/21/2020 5:25:08 PM PDT by EEGator
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To: Red in Blue PA

Let’s hope that senile moron’s tax plans never see the light of day.


12 posted on 09/21/2020 5:26:04 PM PDT by beethovenfan (Mene, Mene, Tekel, Upharsin)
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To: amnestynone
Further, in 2018 the over $100k crowd were the only ones that voted Republican:

https://www.statista.com/statistics/940427/2018-midterm-election-exit-polls-votes-by-income/
13 posted on 09/21/2020 5:26:40 PM PDT by fluffy
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To: Red in Blue PA

This alone will destroy the nation.


14 posted on 09/21/2020 5:26:58 PM PDT by shanover (...To disarm the people is the best and most effectual way to enslave them.-S.Adams)
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To: Red in Blue PA

Dollar figure alone doesn’t tell the whole story. Lower ranking IT schlubs make more than that in CA, they are < 30, and are not homeowners.


15 posted on 09/21/2020 5:28:00 PM PDT by The Antiyuppie (Wht then small men cast long shadows, then it is very late in the day.)
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To: Red in Blue PA

Sounds like there won’t be any gains to tax.


16 posted on 09/21/2020 5:28:34 PM PDT by Brilliant
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To: Red in Blue PA

Hey Biden.

Yeah, you dumbass. You LOOK like a Socialist.


17 posted on 09/21/2020 5:32:10 PM PDT by VeniVidiVici (.)
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To: Brilliant; All

Dems are also pushing to tax UNREALIZED gains. Bought a stock in 1990 for $100 and it is $101 right now and still in your portfolio? They (DEMOCRATS) want to tax the $1 gain you are sitting on even though YOU NEVER SOLD THE STOCK!


18 posted on 09/21/2020 5:32:44 PM PDT by Red in Blue PA (You can vote your way into socialism, but you have to shoot your way out.)
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To: Red in Blue PA

They’ve got to do it to fund their spending.


19 posted on 09/21/2020 5:34:11 PM PDT by Brilliant
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To: Brilliant

It is why they must be crushed. Not just defeated, but thoroughly crushed.


20 posted on 09/21/2020 5:35:13 PM PDT by Red in Blue PA (You can vote your way into socialism, but you have to shoot your way out.)
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