Higher taxes on capital gains?

Mar 2012
55,673
37,130
New Hampshire
#1
Good idea?

Wall Street is bracing for what 2021 might bring. Not only do Democrats want to raise taxes on the wealthy, but an increasing number find taxes on investment profits the most appealing target.

Higher capital gains and estate taxes "are more consistent with a story about work versus wealth, so therefore more attractive from a thematic point of view," reasoned Jake Sullivan, who coordinated policy for Hillary Clinton's 2016 campaign. "Things like the millionaires surtax we proposed in 2016 now feel kind of boring," Sullivan added. "It's not that raising income taxes on millionaires isn't politically salable, it's just not as compelling as taxing returns to wealth."

The top rate on capital gains last matched the top rate on labor income after the bipartisan 1986 tax reform signed by President Ronald Reagan. It set both at 28 percent. Subsequently, the rate on capital gains edged down, while the rate on income edged up. Estate taxes have fluctuated in rates and the size of estates subject to tax.

To finance his spending plans, Sen. Bernie Sanders of Vermont has proposed raising the top personal and capital gains rates to 54 percent. When Sen. Kamala Harris of California called for big federal investments in teacher salaries this week, she identified higher estate taxes as her financing source. When Sen. Elizabeth Warren of Massachusetts proposed expanded affordable housing and universal child care, she tapped estate taxes and a new "Ultra-Millionaire Tax." Clinton's 2016 pollster Joel Benenson still prefers income tax hikes on the wealthiest Americans as "easiest to understand because everyone pays income tax."

Attention Wall Street: Democrats are seeking higher taxes on capital gains
 

Ian Jeffrey

Council Hall
Mar 2013
74,655
43,379
Vulcan, down the street from Darth Vader
#2
I see no reason why long-term capital gains should not be treated the same as ordinary income. (Short-term capital gains already are - or at least used to be, last time I checked, admittedly a while.)
 
Mar 2019
214
130
Portland, OR
#3
Good idea?

Wall Street is bracing for what 2021 might bring. Not only do Democrats want to raise taxes on the wealthy, but an increasing number find taxes on investment profits the most appealing target.

Higher capital gains and estate taxes "are more consistent with a story about work versus wealth, so therefore more attractive from a thematic point of view," reasoned Jake Sullivan, who coordinated policy for Hillary Clinton's 2016 campaign. "Things like the millionaires surtax we proposed in 2016 now feel kind of boring," Sullivan added. "It's not that raising income taxes on millionaires isn't politically salable, it's just not as compelling as taxing returns to wealth."

The top rate on capital gains last matched the top rate on labor income after the bipartisan 1986 tax reform signed by President Ronald Reagan. It set both at 28 percent. Subsequently, the rate on capital gains edged down, while the rate on income edged up. Estate taxes have fluctuated in rates and the size of estates subject to tax.

To finance his spending plans, Sen. Bernie Sanders of Vermont has proposed raising the top personal and capital gains rates to 54 percent. When Sen. Kamala Harris of California called for big federal investments in teacher salaries this week, she identified higher estate taxes as her financing source. When Sen. Elizabeth Warren of Massachusetts proposed expanded affordable housing and universal child care, she tapped estate taxes and a new "Ultra-Millionaire Tax." Clinton's 2016 pollster Joel Benenson still prefers income tax hikes on the wealthiest Americans as "easiest to understand because everyone pays income tax."

Attention Wall Street: Democrats are seeking higher taxes on capital gains
One reason the wealthy have been taking most of the economic growth is that they have been able to invest most of their incomes and are winning big on the stock market. I think we should add a 30% capital gains tax bracket after the current 20% one they already have. We can also possibly add a small wealth tax for very high fortunes and extend the social security tax to all income. Maybe we shouldn't do all these tax increases and only some of them. We should also cut taxes for small and medium sized companies to zero. We should add higher 401K matching requirements for employees and contractors to help people invest more and have enough for retirement. In addition, we should cut military spending, welfare, and a lot of other programs that really should be handled by the states.
 
Jul 2013
53,963
57,834
Nashville, TN
#4
We need to get our tax system in the realm of other industrialized nations, trying to run a super-power on the cheap is just adding more and more trillions to our national debt.
 
Likes: StanStill
Apr 2018
389
133
Northern end of Lake Erie
#5
So let's just go for broke, completely gut the military, and tax EVERYONE 100%. That'll finance the Left's utopia for a grand total of what, a month?
 

StanStill

Former Staff
Dec 2013
12,701
14,167
Work
#6
Likes: highway234
Jul 2013
53,963
57,834
Nashville, TN
#7
And that's just it. There's plenty of money to pay for nationalized health insurance, and tuition free college or trade school. A small portion of the country is absolutely flooded with money.

The 3 Richest Americans Hold More Wealth Than Bottom 50% Of The Country, Study Finds
The result of 40 years of trickle down, the 1% has damn near all the money, and as soon as they get that last bit, they are going to start to trickle, no really, they really, really are.