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Capital Gains Tax Changes in the Reconciliation Bill
American Thinker.com ^ | October 6, 2021 | Jon N. Hall

Posted on 10/06/2021 3:08:16 AM PDT by Kaslin

Because Democrats are trying to incorporate the president’s American Families Plan into their $3.5 trillion reconciliation bill, Americans should be happy that it’s having such a devil of a time getting through Congress. Biden’s “plan” is to raise taxes, and not just by upping tax rates, but also by changing how and when taxes are collected. The proposed changes to the capital gains tax is supposed to target only the super wealthy, but that’s also how the income tax was sold, and we know how that went.

On April 28 the White House released a fact sheet that outlines the American Families Plan and its designs on your money. The fact sheet is rather lengthy, but the part that deals with capital gains is conveniently located at the very bottom of the webpage under this heading: “End capital income tax breaks and other loopholes for the very top.” Only the first paragraph of this section deals with taxes on capital gains; here’s how it ends:

The President’s plan will close this loophole, ending the practice of “stepping-up” the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity. The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business. Without these changes, billions in capital income would continue to escape taxation entirely.

Maybe those billions should “escape taxation entirely.”

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


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: capitalgains; taxes
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1 posted on 10/06/2021 3:08:16 AM PDT by Kaslin
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To: Kaslin

It just never ends. I can not see how all of this is going to end well. We are becoming Venezuela at a very fast pace.


2 posted on 10/06/2021 3:20:10 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Kaslin

Of all the proposed changes in the tax code, this one actually makes sense to me. It’s ludicrous for identical capital gains for taxpayers in the same tax bracket to be taxed differently just because one of them sold it after buying it himself and the other one sold it after inheriting it.


3 posted on 10/06/2021 4:08:20 AM PDT by Alberta's Child ("All lies and jest, ‘til a man hears what he wants to hear and disregards the rest.")
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To: Alberta's Child
Of all the proposed changes in the tax code, this one actually makes sense to me. It’s ludicrous for identical capital gains for taxpayers in the same tax bracket to be taxed differently just because one of them sold it after buying it himself and the other one sold it after inheriting it.

Yes, those damned rich people anyway. How could they dare to be smart enough to prosper far and away more than poor simpletons like you?

TAKE IT AWAY!!!

4 posted on 10/06/2021 4:18:38 AM PDT by Fightin Whitey
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To: Alberta's Child
Of all the proposed changes in the tax code, this one actually makes sense to me. It’s ludicrous for identical capital gains for taxpayers in the same tax bracket to be taxed differently just because one of them sold it after buying it himself and the other one sold it after inheriting it.

Yes, those damned rich people anyway. How could they dare to be smart enough to prosper far and away more than poor simpletons like you?

TAKE IT AWAY!!!

How stupid can one be to think they are going to stop there?

5 posted on 10/06/2021 4:20:56 AM PDT by Fightin Whitey
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To: Fightin Whitey
Yes, those damned rich people anyway. How could they dare to be smart enough to prosper far and away more than poor simpletons like you?

This affects people who get rich only because someone else died.

That's the American Dream right there.

6 posted on 10/06/2021 4:22:08 AM PDT by semimojo
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To: Fightin Whitey
What does “rich people” have to do with what I posted?

For what it’s worth, I’ve long been an advocate of a flat tax rate — where “rich” people and “poor” people are subject to the same tax rates.

7 posted on 10/06/2021 4:24:44 AM PDT by Alberta's Child ("All lies and jest, ‘til a man hears what he wants to hear and disregards the rest.")
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To: Alberta's Child
For what it’s worth

Nothing, to me.

8 posted on 10/06/2021 4:32:39 AM PDT by Fightin Whitey
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To: Fightin Whitey

OK.


9 posted on 10/06/2021 4:35:02 AM PDT by Alberta's Child ("All lies and jest, ‘til a man hears what he wants to hear and disregards the rest.")
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To: semimojo

Exactly. LOL. This guy apparently thinks it takes some kind of special intelligence to die.


10 posted on 10/06/2021 4:37:05 AM PDT by Alberta's Child ("All lies and jest, ‘til a man hears what he wants to hear and disregards the rest.")
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To: Kaslin

Biden’s attempt to get money from upper middle class retirement funds and housing. Rich people do not currently pay death tax, why does anyone think this will be paid by them?


11 posted on 10/06/2021 5:11:23 AM PDT by tlozo
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To: Alberta's Child

A flaw in your reasoning:

IF I buy it myself-—I am controlling that decision.

IF I inherit-—that is out of my control. The dead person made that decision.


12 posted on 10/06/2021 5:34:56 AM PDT by ridesthemiles ( )
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To: Kaslin

It is about spending - overspending by government.

Government Spending To GDP in the United States averaged 37.20 percent from 1970 until 2020, reaching an all time high of 44 percent in 2020 and a record low of 33.40 percent in 1973.

Why is the government allowed to waste so much of our hard earned income on themselves and their friends?


13 posted on 10/06/2021 5:44:03 AM PDT by ADSUM ( )
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To: tlozo

why does anyone think this will be paid by them(rich)?
Because they went to government schools!


14 posted on 10/06/2021 5:46:28 AM PDT by griswold3 (When chaos serves the State, the State will encourage chaos)
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To: MeneMeneTekelUpharsin

Here’s the problem, BOTH Sinema and Manchin are going to cave. We WILL have a socialist Green new deal. Just because it won’t be 3.5 TRILLION should not make anyone happy. Whether it’s 1.5 or most likely 2.5 trillion, it is an attack on our country. Just because it is delayed, doesn’t mean we are not going to get screwed big time. The Dems and the media will crow and pat themselves on the back how they “saved” us a trillion dollars.


15 posted on 10/06/2021 5:48:59 AM PDT by 1Old Pro (Let's make crime illegal again!)
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To: Kaslin
The Bill Clinton, George W Bush, and Donald Trump administrations used the reconciliation process to reduce taxes.

Will Joe Biden be the first president to raise taxes via the reconciliation process?

-PJ

16 posted on 10/06/2021 5:51:13 AM PDT by Political Junkie Too ( * LAAP = Left-wing Activist Agitprop Press (formerly known as the MSM))
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To: ADSUM

https://alfred.stlouisfed.org/series?seid=FYFRGDA188S&utm_source=series_page&utm_medium=related_content&utm_term=related_resources&utm_campaign=alfred
And tax receipts have never exceeded 20% of gdp no matter the tax rate.


17 posted on 10/06/2021 5:55:24 AM PDT by griswold3 (When chaos serves the State, the State will encourage chaos)
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To: Alberta's Child

Great tagline, my FRiend.


18 posted on 10/06/2021 6:01:01 AM PDT by doug from upland (Why the hell isn't Hillary Rodham Clinton in prison yet?)
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To: Kaslin

The democrat plan is always to soak the people, while claiming only to soak the rich.


19 posted on 10/06/2021 6:36:02 AM PDT by hinckley buzzard ( Resist the narrative.)
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To: ridesthemiles
You could say the same thing about a lot of financial transactions that are reported on your tax return -- like a company bonus, for example.

It's not like the dead person is leaving an enormous liability to the one who is receiving the inheritance. It's a tax liability that is a fraction of an ASSET.

Having said that, I also believe that the tax code should include a provision that assesses the capital gains tax liability as soon as the asset changes hands in the inheritance process, but gives the recipient of the inheritance the ability to defer the actual payment of the capital gains tax until the asset is ultimately sold.

20 posted on 10/06/2021 6:59:45 AM PDT by Alberta's Child ("All lies and jest, ‘til a man hears what he wants to hear and disregards the rest.")
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