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 ...
Like FDR - how to ruin the American economy and the livelihood of millions.
Complete and utter devastation - the goal.
The stock market might not believe that Hiden can win, fairly or not.
?
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!
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
Right now most people over the 100k income bracket are planning to vote Democrat.”
Source?
“Right now most people over the 100k income bracket are planning to vote Democrat.”
WRONG!
Re: Right now most people over the 100k income bracket are planning to vote Democrat.
Not in my family.
Every single guy I know that makes over 100K is a Republican.
Let’s hope that senile moron’s tax plans never see the light of day.
This alone will destroy the nation.
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.
Sounds like there won’t be any gains to tax.
Hey Biden.
Yeah, you dumbass. You LOOK like a Socialist.
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!
They’ve got to do it to fund their spending.
It is why they must be crushed. Not just defeated, but thoroughly crushed.
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