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
LiberalArkie
(15,686 posts)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)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)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 dont know.
Eliot Rosewater
(31,097 posts)KPN
(15,587 posts)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 cant 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 dont 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.
doc03
(35,148 posts)probably balance the f----g budget.
Midnight Writer
(21,548 posts)Even a couple of bucks on each transaction would raise a lot of money.
doc03
(35,148 posts)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)for the wealthy. Its their second bible.
lettucebe
(2,336 posts)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.