Please Stow Your Outrage About a Capital Gains Tax Hike

[marmar]

Please Stow Your Outrage About a Capital Gains Tax Hike
There is no evidence for any of the calamities that opponents argue would befall the economy and markets.

By Timothy L. O'Brien
April 26, 2021, 6:30 AM


(Bloomberg) Wealthy Americans are greeting the possibility of a big capital gains tax increase on their investments with “anger, denial and grief,” according to a recent article from my Bloomberg News colleagues. “Over-taxing success is un-American,” Charlie Myers, chairman of Signum Global Advisors and a fundraiser for President Joe Biden, told the reporters.

Others are also angry and grieving about Biden’s plan to raise the rate to 39.6% from 20%. “It felt like I was in some sort of weird daydream,” Jim Iuorio, an options trader, told Larry Kudlow on the Fox Business Network. “It’s just asinine. They know full well that not only will it not gain anymore tax receipts from it … it is such an economic negative.”

All of this echoes long-standing whining that an increase in taxes paid when somebody sells appreciated securities or real estate will trigger financial and economic catastrophes. It is inevitable, the argument goes, that such hikes force a downturn in the prices of assets such as stocks, causes business investment to lag and actually reduces the government’s tax revenue.

But these outcomes have greater traction in the imaginations of those predicting them than they do in the data. If critics of Biden’s proposed tax increase want to make an argument for holding on to an already outsized piece of the prosperity pie, they’ll need to do better than rely on voodoo. .............(more)

https://www.bloomberg.com/opinion/articles/2021-04-26/stow-your-outrage-about-a-capital-gains-tax-hike?srnd=premium

[multigraincracker]

1. EgbertoWilles breaks down the big double taxation lie on dividends.

[doc03]

2. I don't know off hand what the tax tables are but I

think it should be taxed same as ordinary earned income.

[seta1950]

3. I think

If you have enough wealth, that you have to pay capital gains tax, you should not be complaining. You make your money in this country ergo you have to pay taxes, just like the rest of us.

[IbogaProject]

4. Full fare on those freeloaders

Capital gains should be full rate w maybe some reduced or excluded amount lifetime maybe 500K indexed to inflation. The rest should be ordinary income w extra for short term speculative trades.