I'd gladly trade indexing for the capital gains tax preference. It would reward those with actual 'long term' gains, i.e. many years, 5 or 10 at least, at the expense of traders who manage to hold the stock for 366 days.
"Current inflation rates" don't seem to accurately reflect what I'm seeing with my own two eyes.
Funny because if you actually look into that, then you find that the reason the prices are so high is because last March they decided to all cut production thinking the economy was going to crash.
Yeah it’s almost like people on the Internet don’t know as much as people who have devoted their entire lives to studying it...
Do you really believe that production didn't get ramped right back up again?
Please explain how the capital gains tax which comes into play when someone achieves either a profit or a lost on sale of assets affects my 401k. Give a real world example if you can.Stunned Wall Street Responds To Biden's Shock Proposal To Double Cap Gains Tax
With stocks tumbling following the report that Joe Biden is considering a proposal that would double the capital gains tax, as investors dump in hopes of locking in existing cap gains rates - an exercise in futility if Biden and the socialists in Congress decide to make such a tax change retroactive to all of 2021 - Bloomberg quickly polled several Wall Street traders who focused on the policy’s implications for investing, and concluded that while it was too soon to panic, prospects of a higher levy on stock profits could spark near-term selling as investors look to skirt a higher rate.
Here are some hot takes, courtesy of Bloomberg:
Zerohedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zerowww.zerohedge.com
Yeah, and the market jumped today. Will they be equally likely to attribute that increase to Biden's proposal? This game is stupid, where whenever the market goes one way or another a bunch of people say "See! This proves I'm right about everything!" Media doesn't help by playing along for clicks.
When you retire and start drawing on your 401K, you pay capital gains.Please explain how the capital gains tax which comes into play when someone achieves either a profit or a lost on sale of assets affects my 401k. Give a real world example if you can.
This should be good
Not to be stupid, but aren't they taxed as OI?
Yeah, internet seems to confirm, they are OI -- there is no CG issue.
What planet do you live on?????Stunned Wall Street Responds To Biden's Shock Proposal To Double Cap Gains Tax
With stocks tumbling following the report that Joe Biden is considering a proposal that would double the capital gains tax, as investors dump in hopes of locking in existing cap gains rates - an exercise in futility if Biden and the socialists in Congress decide to make such a tax change retroactive to all of 2021 - Bloomberg quickly polled several Wall Street traders who focused on the policy’s implications for investing, and concluded that while it was too soon to panic, prospects of a higher levy on stock profits could spark near-term selling as investors look to skirt a higher rate.
Here are some hot takes, courtesy of Bloomberg:
Zerohedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
That’s easy, it doesn’t.Please explain how the capital gains tax which comes into play when someone achieves either a profit or a lost on sale of assets affects my 401k. Give a real world example if you can.
This should be good
I always thought they were taxed as capital gains... if I'm wrong on that then I stand corrected.
Shhh.... let the OP answer!!!That’s easy, it doesn’t.
For reference, read here:
”Distributions in retirement are taxed as ordinary income.” In other words, capi gains taxes have no effect.401(k) Taxes on Withdrawals & Contributions - NerdWallet
There are no taxes on 401(k) contributions. There are taxes when you take money out of a 401(k). Here's how to reduce your 401(k) taxes.www.nerdwallet.com
I think CG would be better, since OI rates are higher, but I think the idea is you put off paying the income tax for as long as you invest and get to keep growing the untaxed pie until withdrawals. So instead of the taxes being paid up front and that money coming out of your investment base, you get to keep investing the "government's" share of the money and keep most of what that earns over time too.
Cool, now we can snap up the stocks the upper 1% abandoned, though I believe the upper1% is just churning their holdings- big sell off now and purchase even more of the undervalued stock which will rebound quickly as the stock market isn't tied to the capital gains tax rate....
What would you tax more? Actually asking.
That’s conservative orthodoxy. It just isn’t true. Capital gains rates have been changed other times in history. In the Reagan years, short-term capital gains rates were 60% and long-term rates were 40%. Did those high rates torpedo the bull market that started in September 1982? No.
Yes. Shutting down production and starting back up isn’t as easy as pushing a button.
That’s how Roth accounts work — you don't get the tax deferment but you don’t have to pay any taxes when you withdraw the funds.
You need to fire your accountant.
