- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: How do you respond to this Yahoo comment regarding short/long-term capital gains tax rate?
Posted on 12/19/17 at 8:52 am to Vacherie Saint
Posted on 12/19/17 at 8:52 am to Vacherie Saint
Now that I think about it, ST cap gains are taxed at income rates.
1
Posted on 12/19/17 at 8:52 am to Janky
quote:
Irrelevant. That basis is never taxed again anyway no matter what rate you use.
What's the basis on ordinary income? Thats why it is relevant. One requires capital. Taxing capital gains at ordinary income rates would require much higher returns and investment would decline.
However...to answer the OP. Short term capital gains are taxed at ordinary income rates.
Posted on 12/19/17 at 8:52 am to rickgrimes
quote:
Why should someone who makes money by investing money get taxed less than someone making a comparable amount of regular (non-investment/cap gains income)?
Because investing money aids the economy far more than just holding that cash in a savings or checking account.
Both tax streams and their difference are great examples why we need to repeal the income tax and replace it with a single (and Constitutionally locked) VAT.
Posted on 12/19/17 at 8:54 am to TigerBait1971
Dividends and capital gains from stock have already been taxed through corporate income tax. Dividends and the fair market price of the stock are calculated after 35% of the profits have been skimmed off from the government.
So its not taxed less. Its double taxed. Triple if you want to argue like other people are that the original capital was already earned.
So its not taxed less. Its double taxed. Triple if you want to argue like other people are that the original capital was already earned.
Posted on 12/19/17 at 8:55 am to rickgrimes
In the case of dividends there is a reduced rate because that income has already been taxed at the corporate level at 35% and then being taxed again when the money is distributed to the owners (shareholders) at 15/20%. Capital gains are taxed at a lower rate to encourage investment and economic growth.
Posted on 12/19/17 at 9:02 am to rickgrimes
Respond by agreeing with the poster and suggesting that income taxes be lowered across the board to match investment income rates.
Posted on 12/19/17 at 9:03 am to rickgrimes
being a manual labor is noble and necessary and whatnot, but people are going to do it as a means of survival. if you tax the shite out of capital gains, less people will invest, which is obviously bad.
Posted on 12/19/17 at 9:04 am to Janky
quote:exactly, and the incentive staying in the market longer
Now that I think about it, ST cap gains are taxed at income rates.
Posted on 12/19/17 at 9:07 am to rickgrimes
It's hard to reply because someone that thinks like this runs on emotion rather than common sense
Posted on 12/19/17 at 9:09 am to rickgrimes
quote:
quote:
I will never understand why investment income/capital gains from things like stocks and real estate investments etc. is taxed LESS than wages earned by welders and teachers and police officers. Why should someone who makes money by investing money get taxed less than someone making a comparable amount of regular (non-investment/cap gains income)?
How would you respond to this?
Posted on 12/19/17 at 9:16 am to rickgrimes
because it gives the whore politicians and busy-body bureaucrats another avenue to tinker with the economy and impede innovation and human prospering
DEMAND SEPARATION OF ECONOMY AND STATE
DEMAND SEPARATION OF ECONOMY AND STATE
Posted on 12/19/17 at 9:34 am to 90proofprofessional
quote:And short term trading is taxed as ordinary income, which invalidates the initial argument anyway.
You'd have to argue that short-term trading has some value to the system that wage-earning does not.
Posted on 12/19/17 at 10:36 am to rickgrimes
Long term capital gains are the only way to handle inflation.
Example: you buy a share of stock in 1995 for $20. You sell it today for $40. That increase in dollars barely keeps up with the inflation of the dollar. Tax it at a regular rate, and you're fricked for having invested in a company that hired, made money, paid taxes...etc.
(Numbers are hypothetical, because inflation can be measured many, many ways.)
Example: you buy a share of stock in 1995 for $20. You sell it today for $40. That increase in dollars barely keeps up with the inflation of the dollar. Tax it at a regular rate, and you're fricked for having invested in a company that hired, made money, paid taxes...etc.
(Numbers are hypothetical, because inflation can be measured many, many ways.)
Posted on 12/19/17 at 10:47 am to rickgrimes
quote:First, profits (gains) from investments held less than one year are NOT taxed favorably. They are taxed at the same rate as the taxpayers ordinary income is taxed.
How would you respond to this?
Second, investments held longer than one year are taxed at a favorable rate (@ 15% in most cases) to compensate the investor for the risk he had to take in making the investment.
This also encourages people to become investors and not just short term speculators thus providing a more stable stream on funding for longer term assets held by investors. That helps our economy.
Posted on 12/19/17 at 10:54 am to stniaSxuaeG
quote:
And short term trading is taxed as ordinary income, which invalidates the initial argument anyway.
i read it as phrased hypothetically teh first time, but you're right that assertion is in there
Posted on 12/19/17 at 11:11 am to rickgrimes
quote:
How would you respond to this?
Posted on 12/19/17 at 11:31 am to rickgrimes
quote:
How would you respond to this?
Capitalism requires the investment of capital.
Posted on 12/19/17 at 11:35 am to Janky
quote:
Because the government wants to encourage savings.
Government shouldn't be in the business of encouraging saving or spending. That's not the government's place.
Posted on 12/19/17 at 11:36 am to puse01
quote:
The money invested has already been taxed when it was earned initially.
So you're saying money shouldn't be double-taxed? Then why are we double-taxed with Social Security, Medicare...and now...state and local income taxes? That's a double standard.
Posted on 12/19/17 at 11:38 am to Jay Quest
quote:
There is no risk taken to earn a paycheck.
Risk is taken when investing your own capital in a business. We want to encourage investors to take that risk so businesses can grow.
You can't be fricking serious. Tell that nonsense to the next police officer you see, frickwad.
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News