I think you vastly overestimate the importance of a few billionaire oligarchs.
I'm quite glad that Biden is turning on his masters who got him into office. I'd have expected him to increase their taxes by 3 percentage points and to say "SEE, they are now paying their FAIR SHARE" - even though it doesn't make a dime's worth of difference to people who make so much.
If the cap gains rate is 39.6% and the max short-term rate sticks to 37% (maybe that's the next phase), you would want to bail on your investments at 11.9 months and move them to another stock. Otherwise you're just throwing away 2.6%
2.6% is chump change when it comes to such investments. But I assume that the short-term rate will be either equalized or made higher than that still.
It's always the same. The stock market can go up or down 2.6% in a single day. Pretty standard volatility. I think only a fool would buy or sell for 2.6% gain or loss.
What will happen to the billionaire oligarchs is the same as happens now:
Warren Buffet goes to an investment bank and says "I want a $100 million line of credit for pocket money"
Bank asks "what collateral do you have?"
Warren Buffet: "$XX billion of Berkshire Hathaway shares"
Bank: "ok we will give you a $100 million line of credit using your shares as collateral, to be repaid upon your death"
Warren Buffet uses that line of credit for everyday spending until he dies. He pays no capital gains tax on this money because he hasn't sold any shares to obtain it.
When his heirs inherit the shares the cost basis of the shares is adjusted to current market value
Buffet heirs repay the line of credit by selling shares
Buffet heirs pay almost no capital gains tax because they're essentially selling the shares for the same amount as their adjusted cost basis
This is more likely an attempt to make sure the working class does not ever get past that tax bracket and become donors to their competitors. The ultra rich that donates Biden can afford it. Their start up competitors can not.
I think it's more that the finances of the extremely wealthy are nothing like that of us mere mortals, and if you don't know this a simple raising of capital gains tax sounds reasonable because selling your shares is how you would get cash from a modest investment portfolio. Whereas if you're extremely wealthy you have other options.
I think you vastly overestimate the importance of a few billionaire oligarchs.
I'm quite glad that Biden is turning on his masters who got him into office. I'd have expected him to increase their taxes by 3 percentage points and to say "SEE, they are now paying their FAIR SHARE" - even though it doesn't make a dime's worth of difference to people who make so much.
2.6% is chump change when it comes to such investments. But I assume that the short-term rate will be either equalized or made higher than that still.
It's always the same. The stock market can go up or down 2.6% in a single day. Pretty standard volatility. I think only a fool would buy or sell for 2.6% gain or loss.
Wealthy people don't stay wealthy because they throw away money when they don't have to.
What will happen to the billionaire oligarchs is the same as happens now:
This is more likely an attempt to make sure the working class does not ever get past that tax bracket and become donors to their competitors. The ultra rich that donates Biden can afford it. Their start up competitors can not.
I think it's more that the finances of the extremely wealthy are nothing like that of us mere mortals, and if you don't know this a simple raising of capital gains tax sounds reasonable because selling your shares is how you would get cash from a modest investment portfolio. Whereas if you're extremely wealthy you have other options.
Die in a pit, communist.
Why in a pit?
So you don't deny being a communist. I'll try to remember that, pinko.
I'm also not denying being a witch. Let's hope you're not going to burn me.
Comment Reported for: Rule 12 - Falsehoods
Comment Approved: That's not how this rule works.