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 ...
Our government does NOT need more of our money. It needs to quit wasting it on useless and unnecessary and unconstitutional crap.
Investigations, secret CIA activities, overpaid government workers who won’t work, slush funds for corrupt politicians retirement mansion funds (book deals from publishers who were gifted fat govt contracts) etc etc etc. Too much to even think about. Our politicians should be rewarded for cutting costs - not expanding the government budget.
If that was the case, I’d have to immediately sell about 3/4 million in stock. Not a whole lot in the grand scheme of things, but surely I’m not the only one.
When you and others are being chased by a bear, you just need to run faster than the others. I took some profits off the table today, in advance of the drops of the market going on over the next couple weeks. When an upswing happens, I can always climb back on the bull market. Those other people and their moms, need cash in order to play. No cash, no great opportunity.
That would really complicate balancing profits against losses in reporting stock sales on tax forms. As if it isn't complicated enough now. We do diligent logging of stock purchases and sales, and the Democrats would drive us crazy if they changed the rules!
I suspect that yesterday’s huge sell-off was caused by the threat of a hike in Capital Gains should Biden win. My portfolio lost pretty big, not that it amounts to much, and all the indexes were down.
If Biden gets elected, I'll be moving to a capitalist country like Russia.
And I bet that most of those 100k people are government employees.
Notice, I did not call them workers or earners. They are hard core left wing leaches.
100K? Well, in the current system where a family of 4 making 50K pays almost zero tax, the 100K barrier is not that far from the bottom payers.
As far as the capital gains tax goes, my belief, and I am not pro tax, is that is a ruse. Most all capital gains on stocks are the result of investing AFTER the company has received its money from forming or from a secondary offering. The money raised goes to the corp, the buyer gets his shares. IMO, when the original buyer sells, he should be afforded a special rate, he invested in capital formation for a company. On the other hand, after he sells, those shares are not capital formation for a company, they are an investment but not a capital investment. Why should that person be afforded a capital formation rate? If I get interest on a bond, I pay ordinary rate or if I get it from a CD same thing. That is how I see it.
Ambien, Chardonnay, and 5 cats?...
Taxing the rich/wealthy never ends there.
It always drifts down to lower income investors.
They don’t understand what stocks are for.
They don’t understand what guns are for.
They don’t understand what education is for.
They don’t understand what sexual organs are for.
But Machiavellian power politics...that they understand. :)
Thought I'd help ya out there.
The twenty wealthiest districts in this country have Democrat reps. This is not cherry picking. Look at Barones almanac of American politics and you will see that these high income places are more and more electing Democrats.
If the people who run the country can lower their own taxes and then spend what they want to what do you think will happen? Who do you think will pay for it? Making these people pay the taxes when they are spending the money is the way to correct this disparity. Actually the threat of higher taxes may be what it takes to change their minds. And then we don’t have to raise them in reality.
Threatening to tax the people who spend the money is the only way to keep massive deficits from happening. We have huge deficits that have happened as we have lowered upper class taxes. Since they do not have to pay so much in taxes they don’t care about regning in spending especially when they control the spending and it goes to their concerns.
Yeah, I’ll definitely unload all my stocks November 4 if it looks like Biden won. But I really doubt it will happen.
More likely? President Trump wins and announces plans to eliminate of the capital gains tax.
Most of the people in those districts have always voted Democrat. It’s nothing new.
Perhaps. Maybe the wealthy Republicans are moving away to other red areas to get away from the blue.
While living in one of the top 5 wealthiest counties in the country (so I can avoid giving the exact county), you’d think it’s blue by the stats. But, because of gerrymandering, it is a blue district. Most everyone I know is a conservative.
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