Biden and Capital Gains

[Ben]

I've been hearing some pretty dour analyses regarding Biden's plan to hike the capital gains rate to ~40% - something that hasn't been done for a century.

To me, it's the standard lefty talking point that they're only attacking the little Monopoly guy in the top hat - the Wall Street fat cat - not the "working people". They not only ignore the fact that many "working people" are in the market without even knowing it, but also all the ancillary fallout of "sticking it to the rich".

A good opinion piece (published in the left wing The Hill yet):

https://thehill.com/blogs/congress-blog/economy-budget/523173-bidens-foolish-capital-gains-tax-increase

Something I learned from the article was what the "social democracies" people like the squad tell us we need to emulate regarding taxes and free stuff do with capital gains:

The current U.S. capital gains tax rate including the average state rate is about 28 percent, but the average rate across Europe is just 19.5 percent. Numerous countries do not tax long‐term capital gains at all including Belgium, Czech Republic, New Zealand, Singapore and Switzerland.

[DittoHead]

“You’re the one that takes all the money from Wall Street, I don’t take it,” Trump responded. “As president, and as somebody that knows most of those people, I could call the heads of Wall Street, the heads of every company in America—I would blow away every record, but I don’t want to do that, because it puts me in a bad position.”

Trump went on, “And then you bring up Wall Street? You shouldn’t be bringing up Wall Street, because you’re the one who takes money from Wall Street, not me.”

Biden has indeed received deep support from Wall Street donors. As of late September, securities and investment industries donated $51.1 million to the Biden campaign, compared to just $10.5 million to Trump, according to data from OpenSecrets. Contributions from Wall Street fueled a massive third-quarter fundraising total for the Biden campaign.

Wall Street industries appear to favor Biden even though the former vice president has called to raise taxes on anyone with an income of over $400,000.

I guess that Wall Street investment in Biden isn't paying dividends.

[Ben]

I guess that Wall Street investment in Biden isn't paying dividends.

The actual ultra rich that Biden, et. al. claim they go after are the people that will be least affected. They have CPAs and tax attorneys, and the funds to pay teams of them. If I have to pay my tax team $1 million to save me $10 million, I might not like it, but I'm still doing okay. The person making $400K to a couple of million might just be a moderately successful local business, like your plumber.

[K Frame]

I guess they're finally realizing that they can't tax one or two billionaires and get all of the money they need for all of their free *expletive deleted*it proposals.

I really don't think it's going to be very long at all until they start talking about, and trying, to come after the greatest untapped pool of money (you know, BAD money, because the woke government isn't in charge of it) in the nation... retirement accounts: 401ks, IRAs, defined benefits plans... some estimates I've seen have the assets in those at $10 trillion dollars, or more, depending on what all you lump in.

After all, the government knows FAR better than you how to manage your retirement savings. And besides, YOU didn't earn that... you STOLE it from some more deserving, more woke, career welfare recipient.

[K Frame]

Hum...

That figure may be WAY off...

In 2018 there was apparently well over 7 trillion in traditional IRA accounts alone.

In order to get a look at a comprehensive shakeout of money in each type of retirement account I'd have to pony up $39 a month. Sorry, that's going into my retirement account.

Ah, what a world of difference your search terms make...

Total retirement assets in the US, as of 2017, was over $26 trillion...

https://www.asppa.org/news-resources/browse-topics/us-retirement-assets-reach-26-trillion#:~:text=U.S.%20Retirement%20Assets%20Reach%20%2426%20Trillion.%20By%20the,things%20stood%20at%20the%20end%20of%20last%20year.


You know that makes politicians salivate like mad...

[WLJ]

The actual ultra rich that Biden, et. al. claim they go after are the people that will be least affected. They have CPAs and tax attorneys, and the funds to pay teams of them.

Not to mention there are several countries they can easily move to that will be more than accommodating

[K Frame]

Not to mention there are several countries they can easily move to that will be more than accommodating

But to fully evade US taxes they would have to renounce their citizenship.

[WLJ]

But to fully evade US taxes they would have to renounce their citizenship.

Doubt many will have a problem with that with a govt in charge of the US that is openly hostile to them

[K Frame]

Doubt many will have a problem with that with a govt in charge of the US that is openly hostile to them

Really?

Think about it this way...

The incoming government is quite hostile to you because you're a gun owner.

Would it be easy for you to renounce your citizenship because of that?

I seriously doubt that many would find it as easy as you think it would be.

[TommyGunn]

Wouldn't a cap gains tax hike have to go through the Senate en route to the .... offal office, to become law?   

Biden promised a lot.  What can he deliver?  We shall see ...... 

[RocketMan]

Wouldn't a cap gains tax hike have to go through the Senate en route to the .... offal office, to become law?   

Biden promised a lot.  What can he deliver?  We shall see ...... 

With Georgia likely using the same Dominion software on their senatorial runoff election, let's just say I don't have the warm fuzzies.

[Ben]

Wouldn't a cap gains tax hike have to go through the Senate en route to the .... offal office, to become law?   

This is my understanding. Which it's why so critical to keep eyes on Georgia and to keep a million Californians from moving there for a month.

(Rocketman posted while I was typing)

[TommyGunn]

With Georgia likely using the same Dominion software on their senatorial runoff election, let's just say I don't have the warm fuzzies.

Nothing about 2020 should give anyone warm fuzzies.  I think most soothsayers  are predicting the Repubs take the seats.  We will see.

Keep your powder dry.

[DittoHead]

Biden promised a lot.  What can he deliver?  We shall see ...... 

Not much would be my guess. 

Every time I see a discussion based on one of "Biden's plans" my first thought is "what does it matter? It's not going to happen."
Not that it isn't worth some discussion, but I think the vast chasm between what he can plan and what he can accomplish should provide some comfort.