quote:

In his 2025 budget proposal, Biden outlined plans to elevate the top marginal rate on long-term capital gains and qualified dividends to 44.6%. This rate, if enacted, would surpass any seen in over a century, according to Americans for Tax Reform (ATR).

For those looking for a link, I found this:
Biden Calls for 44.6% Capital Gains Tax Rate, Highest Capital Gains Tax Since Its Creation in 1922

quote:

Worse, capital gains are not indexed to inflation. So Americans already get stuck paying tax on some “gains” that are not real. It is a tax on inflation, something created by Washington and then taxed by Washington. Biden’s high inflation makes this especially painful.

https://www.atr.org/biden-call...ts-creation-in-1922/

quote:

Originally posted by Rick Lee:
If this doesn't include a hike in the $250/$500k exemption for cap gains on the sale of a home, it's gonna crush the RE market and pinch a lot of people.

It bit us. We went all-in on a speculative high end build in a very expensive resort area. Yes, we made money, but inflation was a significant portion of our gain, which we then got taxed on. In the end we would have done just as well to have put our money elsewhere and not paid taxes. We took lots of risk and had lots of stress over the project, for what should have been better gains, were it not for inflation.

It's actually a lot worse than that, but it's a complicated story of IRS using discretion to not allow us a break which they had the option to allow.

Thank you

quote:

Originally posted by chellim1:

quote:

In his 2025 budget proposal, Biden outlined plans to elevate the top marginal rate on long-term capital gains and qualified dividends to 44.6%. This rate, if enacted, would surpass any seen in over a century, according to Americans for Tax Reform (ATR).

For those looking for a link, I found this:
Biden Calls for 44.6% Capital Gains Tax Rate, Highest Capital Gains Tax Since Its Creation in 1922

quote:

Worse, capital gains are not indexed to inflation. So Americans already get stuck paying tax on some “gains” that are not real. It is a tax on inflation, something created by Washington and then taxed by Washington. Biden’s high inflation makes this especially painful.

https://www.atr.org/biden-call...ts-creation-in-1922/

The government will eventually wrap its arms around all these 401 plans and drain them one way or another.

Ill dovetail on the post above, why stop at 44.6%, why isn't 50, 55 or 74.6% better in their logic?

If in their logic, there is no disaffect on incentives for those who benefit from long term capital gains, they should just tell us plainly what we really are entitled to.

Simply put there are evil people on Democrat side, that must be defeated.

quote:

Originally posted by Rick Lee:
If this doesn't include a hike in the $250/$500k exemption for cap gains on the sale of a home, it's gonna crush the RE market and pinch a lot of people. Hell, we're almost at the point where we'd be past the $500k exemption if we sold. At that point, if cap gains goes to 46%, we'd never sell - just borrow some equity, buy elsewhere and then rent the current house out. That would dry up inventory quickly.

Yup, this is my fear as well. I’m trying to sell my current home (TX has gotten ridiculous), take all the profit and throw it into my next home and hopefully not end up with a mortgage anymore. This fucking raisin does this, oh my.

check this out

https://home.treasury.gov/syst...ax-Reform-FY2025.pdf

Advancing Equity through Tax Reform: Effects of the Administration’s Fiscal Year 2025 Revenue Proposals on Racial Wealth Inequality

While the Federal individual income tax, taken as a whole, is progressive, meaning that it reduces income inequality, some elements of the tax code exacerbate differences in income and wealth accumulation by different racial groups, leading to greater inequality

Treasury estimates that 92 percent of the benefits of the tax expenditure for preferential rates on capital gains and qualified dividends accrue to White families. Only 2
percent of the tax expenditure accrue to Black families and 3 percent to Hispanic families

In contrast, other elements of the tax code reduce inequality across racial groups. For example, while Black and Hispanic families represent 11 percent and 15 percent of all U.S. families respectively, they receive 19 percent and 28 percent of the Earned Income Tax Credit benefits.
About half of the benefits of the EITC go to White families, but that share is less than their share of the population. A major reason the EITC is successful in reducing
inequality is because it is refundable and therefore available to families with low- and moderate incomes.

As discussed in a previous Treasury blog post, racial inequality in the United States today is rooted in longstanding behaviors, beliefs, and public and private policies that resulted in the appropriation of the physical, financial, labor, and other resources of non-white people

Treasury estimated the benefit of this tax expenditure for preferentially lower rates on certain capital gain and qualified dividend income to be $146 billion for 2023 (U.S. Treasury, 2023) and that 92 percent of the benefits – $135 billion – accrued to White families. Roughly 2 percent went to Black families, and roughly 3 percent went to Hispanic families.

Over time, these proposals are expected to increase wealth accumulation by low- and middle-income families and to reduce the racial wealth gaps.

A premium assistance tax credit (premium tax credit or PTC) is provided to qualifying individuals who purchase health insurance through an exchange in the individual health insurance market established under the Affordable Care Act of 2010 (ACA). The PTC is refundable and payable in advance directly to the insurer.

The ARP decreased the applicable contribution percentages for taxable years 2021 and 2022. The Inflation Reduction Act of 2022 extended these changes through taxable year 2025. The Administration’s Fiscal Year 2025 Budget would make these changes permanent. This would enable low-income families to better afford health insurance and allow them to use some of the savings to build wealth

As shown in a Treasury study, preferential tax rates on long-term capital gains disproportionately benefit White taxpayers

Because current benefits of the preferential rates on capital gains and dividends skew toward White families, the proposal to reduce those benefits also skews toward White families

According to a Tax Policy Center analysis of the 2019 Survey of Consumer Finances (Holtzblatt et al., 2023), 77 percent of White families had unrealized capital gains, compared with 47 percent of Black families and 49 percent of Hispanic families. Moreover, the distribution of wealth among Americans has grown increasingly unequal, concentrating economic resources in a steadily shrinking percentage of individuals. Coinciding with this period of growing inequality, the long-term fiscal shortfall of the United States has significantly increased. Reforms to the taxation of capital gains and qualified dividends will reduce economic disparities among Americans and raise needed revenue.


Intergenerational asset transfers, income, home ownership and education have consistently been identified as factors which heavily impact wealth inequality by race and ethnicity in the United States. One of the main mechanisms for perpetuating racial and economic inequality is the “lockstep inter-generational transmission of socioeconomic status”

in case it is not obvious, this is Critical Race Theory

more here:

https://hotair.com/david-strom...ax-proposal-n3787268

Go ahead. See if all those big money leftists still support him. The "elites" are always in for wage tax increases because they make their money on investments and thus pay capital gains tax. Hit them in the wallet and they will turn on Biden.

quote:

President Joe Biden's proposal to increase the top capital gains tax rate could be the highest such tax rate in over a century.

Thankfully this wannabe dictator can't do it all by himself. The chances it will pass Congress aren't zero, but are very low.

It would seize up new investments and old investments with big built up gains would sit forever. Then Upon death transfer to the kids with a new step up in basis. Their wet dream is to get rid of the step up on basis on death.

This is just something to get people to offer an alternative like taxing the Roth distributions as a capital gain or something similar. Tell them you will take everything and then they will be happy to give you half.

Sorry but the number of people that have invested in traditional 401K's, Roth 401K's, IRA's, and Roth IRA's, is a pretty big voting block. They invested because that is the deal the government gave them. Changing the deal after the fact is not going to go over well.

The problem with the Democrats is they buy votes by giving government largess to all manner of "non-profits" that really just advocate for the party by throwing money around. They have encouraged all manner of rent seekers that provide no value, and simply siphon money from everything to government does. And the stupid Republicans have allowed this to happen on their watch...

According to this article, the tax rate increase is for high income individuals. Not that I agree with that, but it appears this wouldn't affect the average SIGforum member.

https://www.kiplinger.com/taxe...pital-gains-tax-rate

Biden Calls for Doubling Capital Gains Tax

President Biden’s $7.3 trillion FY 2025 budget released last month, proposes several tax changes aimed at wealthier taxpayers, including a minimum tax on billionaires, a near doubling of the capital gains tax rate, and an increased Medicare tax rate.


This budget proposal comes as the IRS says it has recently collected (through ramped-up enforcement) more than $500 million in unpaid taxes from delinquent millionaires and "wealthy tax cheats."


The White House says the President's budget, which also contains several tax breaks for those with lower and middle incomes, including new homebuyer tax credits, would reduce deficits by nearly $3 trillion over ten years.

Biden capital gains tax increase

The capital gains tax rate for long-term capital gains, assets held for more than one year, is at most 20%. Capital gains are the profits you make from selling or trading an asset. The tax rates that apply to a particular capital gain (i.e., capital gains tax rates) depend on the type of asset involved, your taxable income, and how long you held the property before it was sold.

Biden’s FY25 budget proposal would nearly double that capital gains tax rate to 39.6%. That proposed capital gains rate increase would apply to investors who make at least one million dollars a year.

Note: You may have heard about a proposed 44.6% capital gains rate in a budget footnote. That rate is a separate proposal that if ever approved, would apply only to those with high net investment and taxable income. (The rate supposes an increase of the net investment income tax rate to 5% above the $400,000 threshold with an increased top ordinary rate of 39.6.)

cont...

quote:

Originally posted by Lefty Sig:
Sorry but the number of people that have invested in traditional 401K's, Roth 401K's, IRA's, and Roth IRA's, is a pretty big voting block. They invested because that is the deal the government gave them. Changing the deal after the fact is not going to go over well.

Yes, but .... when the next market crash happens, which it will, the government will step up in and offer to save us all from those nasty market surprises. They'll guarantee us some random "return" as an annuity. Maybe the infamous 4%. It will sound good to a lot of people who just had their savings cut in half.

For the large percentage of people who have essentially no savings, there will be some sweetener for them, too. Something immediate, like a refundable tax credit every year until retirement. This will be insidious because it will incentivize people to work until much older than they would have so they can get the extra government money.

The new system will use the curve bending which is built into Social Security, where the more a person earns the less they get back. Another vote buying tactic to get people to accept confiscation of other people's retirement accounts.

People didn’t think they’d be subject to the death tax either.

A) Tyranny is tyranny. Letting a minority be financially raped, will never end well.

B) Think about the people who do have that income. What happens when they are stripped of their assets?

Hell, there’s damn near no reason for most of the productive class to work, as it is.

I have friends who’ve left for Singapore. Another keeps trying to get the producers he knows to move to Switzerland.


Producers will NOT accept being n—-rs. It’s already gone far too far.

Texas and AK are surprisingly close to secession as it is.

I don’t know ANY producers who are happy with the current situation - and they haven’t been for a very long time. Most of us are still working because we don’t know how to stop/we like what we do, but remuneration is directly linked to the bullshit quotient.

Every person I know who’s made any capital at all, waded through poop to do so. The more comfortable we get, the less poop we tolerate interacting with - but this admin has been rapidly increasing the daily poop quotient, and seems to now strip all remuneration from the “successfully working” class.