Re: Told y'all this was coming. Doubt it passes Congress.

Then take a look at federal revenue over the same period, as a percentage of GDP. ALWAYS between 15-20%.

That's with a 90%+ top income tax rate, and a 25% top income tax rate. And everything in between. Doesn't matter.

The top 1% of INCOME earners in the us are NOT the top 1% of wealth holders in the US. Under Biden's plan, for example, Jeff Bezos, who has an annual income of around $200-300K, will be exempt from the higher capital gains tax rate. He can sell his stocks as he wishes at capital gains levels a plumber would pay.

What you will see is CEO salaries, and all kinds of "income" capped at $990,000 for everyone. A CEO makes $20 million a year in "compensation". That's not income. He's paid a "salary" of $900K a year, and gets a company car as a perk for $90K a year, for a total INCOME liability of $990K. The other $19,010,000.00 he is "compensated" is through stock options he is given. AND, he can then sell that stock whenever he wants to, at the same capital gains tax rate as a plumber who EARNS $100K a year as INCOME when he cashes in his 401K.

Another part of Biden's plan is to eliminate the "step-up" provision for estates and trusts. BUT, that has already been circumvented by good trust attorneys for several years now.

It's all a charade. STILL. I originally thought Biden's capital gains plan applied to people selling and taking capital gains who HAD ASSETS valued above a certain threshold. Nope, he's still using the income ruse.

Totally agree the only solution is to cut spending.

flow0440

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I get what you're saying on the taxation side...

Apr 25, 2024, 8:18 AM

but I don't think the top marginal rates, without the context of the change in other tax law, specifically simplification of deductions, paints a fair picture. The effective rates didn't change that much when the marginal rate structure and deduction structure was changed.

I'm not sure I believe the top 1% of earners aren't the top 1% of wealth holders...of course not an exact match, but I would bet the each group is pretty similar. Of course capital gains are included in taxable income.

Frankly, I think a taxation system on wealth is absurd. In just about all cases, the funds used to build the wealth have already been taxed, which is one of the underlying principles of why cap gains are taxed at a lower rate than regular income. Of course, the economic stimulus impact of investment and the risk of investment are also big points.

Is it a one-time tax or a continuous tax? Is it based on present value? When the value decreases year-over-year, are refunds issued? And on and on. It's just a bad idea.

In my book, rich people are paying their fair share now and the rich not being taxed enough isn't what is causing our federal budget deficit problem. That argument is used for convenience to avoid having to take on the much more difficult task of reducing the scope and structure of the federal government. We need a real leader willing to present the situation with figures and facts and a plan and work to lead the changing of opinions rather than preying on fears and ignorance...on all side of the political spectrum.

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Told y'all this was coming. Doubt it passes Congress.

How much income do you have to have to be subject to the higher capital

The source for the information was slightly....biased.

Taxation is theft.***

So edgy!

Is there a draft bill?