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Capital gains investments should be taxed at 90%

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posted on Apr, 13 2016 @ 02:34 PM
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a reply to: onequestion

Peter Schiff does a good job explaining. Long and short of it is that only about 10,000 people out of 45 million tax filers...

Fantasy of the 91% Tax Rate




posted on Apr, 13 2016 @ 03:13 PM
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originally posted by: onequestion
a reply to: DupontDeux

I'm talking about the stock market for the most part.

People will be more intelligent with their money especially if their making more enabling them to invest in the company themselves.


Pray tell why in the hell would anyone invest in the stock market? Let's just say for the sake of argument I own a stock that gained $50 on its price I sell and make a whole whopping $5, woo hoo



posted on Apr, 13 2016 @ 04:22 PM
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originally posted by: Edumakated
a reply to: onequestion

Peter Schiff does a good job explaining. Long and short of it is that only about 10,000 people out of 45 million tax filers...

Fantasy of the 91% Tax Rate


So....only the ultra wealthy end up paying?



posted on Apr, 13 2016 @ 04:22 PM
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a reply to: pavil

Yeah I don't think you understand.



posted on Apr, 13 2016 @ 04:34 PM
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a reply to: ketsuko

Look obviously you need to use your intelligence here.

Average Americans are the not the ones who should be target for capital gains in talking big money makers who sit in offices making billions off the markets and pay less taxes than we do on money they didn't actually have to work to create.

If you don't have to do any actual work to create that value than that value needs to be recirculate back into the economy in a way that's more effective for a society.

We want a healthy society your personal wealth is prioritized as secondary to the health of the general community.

Take your money bags and move to Liberia if you want to live like a king by yourself and build walls around your house.

I want to live in a country where more people are living happy healthy lives and when I look around he community what I see are people struggling.



posted on Apr, 13 2016 @ 04:38 PM
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a reply to: onequestion

I see a few people have already mentioned how companies use capital to generate further jobs. What I'd like answered is how you think that increasing a tax to 90% will solve any problems. Governments are notorious for spending beyond their means - aka deficit blowouts etc. What makes you trust that the extra revenue will be used to further the well being of the average joe?



posted on Apr, 13 2016 @ 04:41 PM
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a reply to: TheConstruKctionofLight

This is a poorly constructed argument in my opinion.

Our government is a failure because we keep voting in the same asshole over and over again.

Stop blaming the government and take some responsibility.

You know what really creates the conditions for more small business owners?

I'll tell you..

When the average citizens makes more money they spend more money meaning there is more circulation creating more opportunities.

It also means that he big corporations can't grow as fast opening even more opportunities for strengthening local economies.



posted on Apr, 14 2016 @ 07:18 AM
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a reply to: onequestion

I think a better way to go would be to tax share trades at the buyers marginal rate of tax.

Why should not an important and key economic tool such as the share market not be taxed like all the other tools in the economy? It causes a distortion in the tax system that is not good for the economy.



posted on Apr, 14 2016 @ 07:57 AM
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a reply to: Azureblue

Because IT IS the economy. You cant tax the economic engine, but you can tax what work the engine produces.

Just to say, my funds I invested in have a fractional load, and any outright trades I do in the stock market are 100% fee and commission free.

I have to leverage my investments based on my costs to invest. And taxing share purchases or sales outside of capital gains would significantly dampen my enthusiasm.
edit on 14-4-2016 by smirkley because: (no reason given)



posted on Apr, 14 2016 @ 01:53 PM
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a reply to: Azureblue

I'm totally clueless about what you just said I'll have to look into that before commenting thanks.



posted on Apr, 14 2016 @ 03:23 PM
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a reply to: onequestion

A 90% capital gains rate won't work, because it would essentially shut down all investment. It's important for investment income to be viable in order for retirements to actually be viable. Social Security, Wall Street, Bonds, and many others all rely on getting money back and a flat 90% would break that.

What could work however is removing the concept of capital gains and just having income, then taxing income on a progressive scale as we do now (and have for the past 100 years) up to whatever top marginal rate you would like, which could be 90%.



posted on Apr, 14 2016 @ 03:37 PM
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originally posted by: Edumakated
Hardly anyone paid those tax rates. A tax bracket does not mean you have people actually paying those rates.


To expand on this concept:

We have what is known as a progressive rate. You pay a particular rate on money earned between a certain value, this is true back then as well. This means that you're always paying less (usually a good deal less) than your tax bracket.

To use the 2015 brackets as an example (just going to link rather than copy them):
taxfoundation.org...

Someone making $40,000 is in the 25% bracket but in actuality they're paying 10% on the first $9225, 15% on the next $28,225, and 25% on the last $2,550 for a total tax of $5,793.75 before any sorts of deductions. Some quick math shows that to be an effective rate of 14.48%, much less than their 25% bracket, and with a few standard deductions and such you can pretty easily get that down to a 10-11% effective rate.

This was true in the past too when we had top marginal rates of 90% There were numerous deductions and in the end if you were paying 90% on anything it was only on your last few dollars. In reality though for the past few decades atleast (not really sure of how it was before Reagan) you can offload some of your compensation into company stock if you're high enough up the ladder and then later sell it at the capital gains rate of 15% dramatically decreasing your tax burden. Doing this people are able to have incomes of several million while only paying 15% on most of that, or sometimes even less as Romneys, Buffets, etc tax records have shown with effective rates of 12-13%.

The real taxes that most people pay are hidden regressive taxes, and every time we deny an obvious tax increase (usually income tax or sales tax) more hidden taxes are usually added to pick up the slack. As one of my professors likes to constantly remind me, when you buy a pair of shoes you're paying something like 48 different taxes. The major one is sales tax, but there's a lot of taxes on materials, labor, production, and so on at each node of the distribution chain. Those taxes differ much less between the rich and the poor, everyone pays closer to the same amount.
edit on 14-4-2016 by Aazadan because: (no reason given)



posted on Apr, 14 2016 @ 03:47 PM
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I under stand what the OP is trying to say. By forcing investors to invest directly into company's ie buying products or direct investment. You would eliminate the speculation of companies and reduce the bubble on stocks. Right now a lot of company's on the market are trading at 10 times the value of the company. And where that might work people would just find another way.



posted on Apr, 14 2016 @ 05:13 PM
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a reply to: speeddr2000

Yes Wall Street is bad bad bad news for our and the economy big time.



posted on Apr, 14 2016 @ 05:32 PM
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a reply to: Aazadan

The majority of taxes are paid by the poor and middle class through consumption rich people get away with everything.



posted on Apr, 14 2016 @ 05:33 PM
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originally posted by: Aazadan
a reply to: onequestion

A 90% capital gains rate won't work, because it would essentially shut down all investment. It's important for investment income to be viable in order for retirements to actually be viable. Social Security, Wall Street, Bonds, and many others all rely on getting money back and a flat 90% would break that.

What could work however is removing the concept of capital gains and just having income, then taxing income on a progressive scale as we do now (and have for the past 100 years) up to whatever top marginal rate you would like, which could be 90%.


That does make sense but what about speculation and raising the capital gains tax to something more reasonable so that they take on the same burden as the companies they choose to invest in?



posted on Apr, 14 2016 @ 07:36 PM
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a reply to: onequestion

The current capital gains tax maxes out at 39%. It varies between long and short term investments. But the average tax rate is about 35%. That's way more than reasonable.



posted on Apr, 14 2016 @ 08:04 PM
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originally posted by: onequestion
a reply to: speeddr2000

Yes Wall Street is bad bad bad news for our and the economy big time.


Again, wall street IS THE economy.

And also Wall Street has been kind as of lately.



posted on Apr, 14 2016 @ 08:05 PM
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a reply to: smirkley

Wall Street is he economy?

I look around town right now and what I see is a bunch of small businesses not being traded on all street and manufacturing and construction happening not traded on Wall Street.

That's the real economy Wall Street is a place for people to make money off other people's hard work.



posted on Apr, 14 2016 @ 08:23 PM
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originally posted by: onequestion
a reply to: Aazadan

The majority of taxes are paid by the poor and middle class through consumption rich people get away with everything.


That is demonstrably false.







 
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