A fair tax would be to require capital gains be paid each year just like income tax and at the same rate.

[bave]

And if you assume that.. his likely capital gains rate would be 0%.

True.

And annoying. But that is not the first time you have heard that.

It is annoying listening to people claim expertise while they F something up so badly.

 

[craig]

True.



It is annoying listening to people claim expertise while they F something up so badly.

Lastly, I note you posted 2014, odd year to pick for someone so successful. Most people would have chosen the most recent years of 2020 or 2019. More accurately, they would show a complete analysis of brokerage statements to show the entirety of the activity over a several year window. Taking a snapshot in time to make yourself feel good, if you think that is what this did, isn't hard.

My personal 1040 is pretty boring honestly, like I said, it is a lot of holding, not a lot of transactions. The bulk of my assets are held in trust and don't report on a 1040.

The only thing you have shown is that you have a trust fund. Do you work?

 

[jaeger19]

Everything has risk, but my salary has always been rock steady. I was SOME incentive to take a risk I do not currently have by investing. A lower tax rate on any gains is that incentive.

Because it was rock steady does not mean that there was no risk. Like I said... why tax individuals that earn income through hard work and actual risk... more than income that is derived from essentially gambling.

Frankly.. what value is incentivizing you to take risk in buying stock? What value to society is that that justifies why I have to pay more in taxes for my earned income?

 

[AARguy]

Because it was rock steady does not mean that there was no risk. Like I said... why tax individuals that earn income through hard work and actual risk... more than income that is derived from essentially gambling.

Frankly.. what value is incentivizing you to take risk in buying stock? What value to society is that that justifies why I have to pay more in taxes for my earned income?

Frankly, when I am considering investments... YOUR taxes are the farthest thing from my mind.

 

[bave]

The only thing you have shown is that you have a trust fund. Do you work?

Not a whole lot, own some businesses, but none that I run day to day.

 

[jaeger19]

Frankly, when I am considering investments... YOUR taxes are the farthest thing from my mind.

Exactly my point.
You have two investments. One that requires you to work and earn your income..
Another doesn;t require you to work and happens when click your computer to sell a stock you had for over a year.

You make the same income on either investment.. but the one you work at? You pay 37% tax
The other one with a click of a button you pay 20% tax? Which would you choose.?

Which one do you think should be incentivized in the US?

 

[Wry Catcher]

no, a fair tax would be the same rate for everyone

So a family of four earning $60,000 would pay 10%, and net $54,000 notwithstanding other taxes and fees; and a single person earning $6,000,000 would net $5,400,000 notwithstanding other taxes and fees.

 

[TurtleDude]

So a family of four earning $60,000 would pay 10%, and net $54,000 notwithstanding other taxes and fees; and a single person earning $6,000,000 would net $5,400,000 notwithstanding other taxes and fees.

yeah but real fairness is everyone paying exactly the same amount of federal income taxes. The flat rate is better than the current system. I like how you depict that rather than saying the family pays 6K and the other guy pays 600K. Somehow I doubt the latter taxpayer gets 100 times the governmental benefit for paying 100X more taxes

 

[Wry Catcher]

yeah but real fairness is everyone paying exactly the same amount of federal income taxes. The flat rate is better than the current system. I like how you depict that rather than saying the family pays 6K and the other guy pays 600K. Somehow I doubt the latter taxpayer gets 100 times the governmental benefit for paying 100X more taxes

Yeah and the guy whose earned income is 6 million uses some of his net income to put money into his Senator and Member of the H. or Rep., to keep a regressive tax structure. The family whose net is all used up and can't bribe the Pols.

 

[jaeger19]

yeah but real fairness is everyone paying exactly the same amount of federal income taxes. The flat rate is better than the current system. I like how you depict that rather than saying the family pays 6K and the other guy pays 600K. Somehow I doubt the latter taxpayer gets 100 times the governmental benefit for paying 100X more taxes

He actually likely got more than that.
Cripes...for a smart guy you come up with the nuttiness things..
So basically you think taxes should be based on what the poorest are able to pay without starving? Or should they just starve.
Seriously explain how your system would work..so you expect the retired grandma living off social security to pay 6 thousand in taxes per year?
Let's hear how it works.

 

[TurtleDude]

He actually likely got more than that.
Cripes...for a smart guy you come up with the nuttiness things..
So basically you think taxes should be based on what the poorest are able to pay without starving? Or should they just starve.
Seriously explain how your system would work..so you expect the retired grandma living off social security to pay 6 thousand in taxes per year?
Let's hear how it works.

I would suggest if the government was based on that tax schedule, than we would be able to do that. The excuse that the government NEEDS more and more money gets old

 

[TurtleDude]

Yeah and the guy whose earned income is 6 million uses some of his net income to put money into his Senator and Member of the H. or Rep., to keep a regressive tax structure. The family whose net is all used up and can't bribe the Pols.

as many really rich people supported Senile Joe as supported Trump. IN fact the uber billionaires favored Biden

 

[skeptic llc]

OK. But no one is trying to decrease the inheritance tax. But they are trying to increase capital gains tax rate so its more in line with income tax. So that still doesn’t make sense. Based on what you’re saying, it seems there is more incentive to invest your money and live off the fat than it is to work.

I don't think I'm disagreeing with you on CG vs. OI (if anything, I think CG should be taxed more), but the virtually untaxed elephant in the room is inheritance. Maybe no one is trying to decrease it (actually, Rs constantly are, but that's not the point), but it is pitifully low in practice compared to other taxes, for a variety of reasons (legal ways to dodge it, high exemption amount, virtually non-existent auditing). We have a system that suggests we want to tax inherited income least of all, yet that makes zero sense from an incentive perspective.

 

[AARguy]

I don't think I'm disagreeing with you on CG vs. OI (if anything, I think CG should be taxed more), but the virtually untaxed elephant in the room is inheritance. Maybe no one is trying to decrease it (actually, Rs constantly are, but that's not the point), but it is pitifully low in practice compared to other taxes, for a variety of reasons (legal ways to dodge it, high exemption amount, virtually non-existent auditing). We have a system that suggests we want to tax inherited income least of all, yet that makes zero sense from an incentive perspective.

Inheritance is money tat has ALREADY been taxed by the guy that earned it. It should NOT be taxed AGAIN.

 

[reflechissez]

Inheritance is money tat has ALREADY been taxed by the guy that earned it. It should NOT be taxed AGAIN.

Unrealized gains and IRA's have not been taxed already.

 

[AARguy]

Unrealized gains and IRA's have not been taxed already.

But the money that paid for the house, the furnishings, the cash-on-hand, the car(s), the walk-in tub, the jacuzzi, the GENERAC, the silver in the suitcase, the gold coins, the gun collection, the crystal, the art works, the antiques, the appliances, and all the rest sure has.

 

[reflechissez]

But the money that paid for the house, the furnishings, the cash-on-hand, the car(s), the walk-in tub, the jacuzzi, the GENERAC, the silver in the suitcase, the gold coins, the gun collection, the crystal, the art works, the antiques, the appliances, and all the rest sure has.

But that's not what you said. We have state and inheritance taxes. If you're free to argue that we shouldn't.

 

[AARguy]

But that's not what you said. We have state and inheritance taxes. If you're free to argue that we shouldn't.

This exchange has totally verified the validity of my decades old decision to leave everything financial to my CPA/EA tax attorney wife. I will continue to do that. I'll stick to my engineering consulting pursuits.

 

[Aunt Antifa]

This exchange has totally verified the validity of my decades old decision to leave everything financial to my CPA/EA tax attorney wife. I will continue to do that. I'll stick to my engineering consulting pursuits.

So you had no idea what you were talking about, acknowledge that, and insist it’s the fault of the subjects themselves that create this flawed argument on your end?

 

[bave]

So you had no idea what you were talking about, acknowledge that, and insist it’s the fault of the subjects themselves that create this flawed argument on your end?

Pot meet kettle.

 

[Aunt Antifa]

Pot meet kettle.

That doesn’t even make any sense, you should have bolded just one part of it. It would still have been hack but at least it would have made some sense.

 

[AARguy]

That doesn’t even make any sense, you should have bolded just one part of it. It would still have been hack but at least it would have made some sense.

Arrogance is not attractive.

 

[jaeger19]

I would suggest if the government was based on that tax schedule, than we would be able to do that. The excuse that the government NEEDS more and more money gets old

You didn't explain how it works..
How do you arrive at the amount we all have to pay?

 

[jaeger19]

Unrealized gains and IRA's have not been taxed already.

Because they are unrealized and their true value has not been established. It will be when they are income.

 

[TurtleDude]

You didn't explain how it works..
How do you arrive at the amount we all have to pay?

divide up the spending by the number of voters