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Yo_Mama_Been_Loggin

(107,112 posts)
Thu Jul 2, 2020, 04:27 PM Jul 2020

Cutting capital gains tax won't help people. It would only encourage investors to sell their winners

Would someone, anyone, explain to me the rationale for cutting capital gains taxes as a means to stimulate the Main Street economy?

Former White House Chief of Staff and Budget Director, Mick Mulvaney, once known as a fiscal hawk, reiterated his support on CNBC Wednesday, for a cut in capital gains taxes.

Capital gains are already taxed at preferential rates for investments held for longer than one year.

The current cap gains rate is 20%. But, with the retention of the so-called net investment income tax, the total federal capital gains tax could reach 23.8%.

In some cases, the sale of art, vintage cars or other more exotic assets, cap gains taxes reach 28%, but all long-term capital gains are taxed well below the highest statutory income tax rate of 37% on ordinary income.

https://www.msn.com/en-us/money/markets/op-ed-cutting-the-capital-gains-tax-won-t-help-people-it-would-only-encourage-investors-to-sell-their-winners/ar-BB16gx79?li=BBnbfcN&ocid=DELLDHP

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LiberalArkie

(15,686 posts)
1. An easy example: Steve Jobs was only paid $1 a year and was one of the richest men alive at the time
Thu Jul 2, 2020, 04:32 PM
Jul 2020

He like a lot of CEO's etc take very little actual taxable income. They however take stock and capital gains taxes are real low.

Eliot Rosewater

(31,097 posts)
2. Capital gains tax should exist solely for small transactions, for regular people
Thu Jul 2, 2020, 04:37 PM
Jul 2020

and structure it so the rich cant use it, at all.

Or wouldnt use it, and this would be simple to do.

KPN

(15,587 posts)
6. Great idea but fat chance right now. If we can take
Thu Jul 2, 2020, 05:35 PM
Jul 2020

the Senate as well as the WH, it could actually be possible if enough pressure can be placed on moderate Dems. That might be a big “if” — I truly don’t know.

KPN

(15,587 posts)
9. I didn't say that. But I don't have faith in all
Thu Jul 2, 2020, 05:47 PM
Jul 2020

Democrats when it comes to economic policy. I know some Democrats personally who say they are fiscal conservatives. I worked with a few. Now, I can’t say that I know that any Democrat in the House or the Senate is fiscally conservative, but there are plenty who are moderates. I really don’t where they as a group would stand on carving out exceptions to higher capital gains taxes for lower and middle class investors. It would be great if they all supported the idea or others like it. Hopefully, we will see.

Midnight Writer

(21,548 posts)
4. This was once a Bernie campaign issue, and I thought a good one.
Thu Jul 2, 2020, 04:42 PM
Jul 2020

Even a couple of bucks on each transaction would raise a lot of money.

doc03

(35,148 posts)
5. After all before on line trades there was a fee
Thu Jul 2, 2020, 05:04 PM
Jul 2020

on buying and selling stocks it added about $1 to the share price of stock. So if bought than sold say 100 shares there was about $100 in trading fees. Now you can trade a 100 shares for a couple dollars. There is plenty of room there for a tax without hurting anyone. There would be another benefit it would cut back on the day trading and make investors go for long term growth rather than the next quarter. There was another Democrat that ran on that issue in one the presidential primaries. Don't remember who it was now. There are billions of shares traded every day.

KPN

(15,587 posts)
8. That's the only tool they have in their economic tool box -- tax cuts
Thu Jul 2, 2020, 05:38 PM
Jul 2020

for the wealthy. It’s their second bible.

lettucebe

(2,336 posts)
10. It's just another cash grab for the wealthy. There is literally no reason to do this
Thu Jul 2, 2020, 05:55 PM
Jul 2020

It certainly doesn't help the average American. They keep trying though. Get rid of capital gains, get rid of inheritance tax. Any tax the more wealthy have to pay they want to get rid of.

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