Under Biden Tax Plan, Capital Gains Tax Will Exceed 50% In 11 States

[mountaineer]

Under Biden Tax Plan, Capital Gains Tax Will Exceed 50% In 11 States
Robert W. Wood
Senior Contributor
May 6, 2024,10:16am EDT
Forbes

President Joe Biden floated a bevy of tax increase proposals as part of the president’s FY 2025 budget. That budget comes in at a cool $7.3 trillion, and someone has to pay for it. That likely means serious tax increases, and the president is not shy about proposing them. Much of his focus is on getting higher income taxpayers to pay more, but the one that seems to be capturing the biggest headlines is his planned reboot of capital gain taxes. Higher federal rates plus state taxes will mean paying over 50% in some cases.

If you sell your stock, property or crypto and you’ve held it for more than one year, you get a classic tax break. Long-term capital gains are taxed at lower rates than ordinary income. But how much lower depends on your income. If your taxable income is $47,025 or less, you pay zero tax on your long-term capital gain. If your taxable income is from $47,026 to $518,900, you’ll pay 15% on your long-term capital gain. ...

How about state taxes, you might wonder? The Daily Mail noted that there are 11 states where Americans will face at least 50% capital gain tax under this plan. If the Biden plan passes, for the taxpayers caught by the new rule, here are the combined state and federal rates taxpayers might pay on their capital gains:

    California 57.9 percent;
    New York 55.5 percent;
    New Jersey 55.5 percent
    Minnesota 55.45 percent;
    Oregon 54.5 percent;
    Maine 51.75 percent;
    Nebraska 50.44 percent;
    Idaho 50.4 percent;
    Iowa 50.3 percent;
    Kansas 50.3 percent; and
    Georgia 50.09 percent.   ...

https://www.forbes.com/sites/robertwood/2024/05/06/under-biden-tax-plan-capital-gains-tax-will-exceed-50-in-11-states/?sh=aae0c857ce98

[LMAO]

An argument for gridlock after this election

[libertybele]

An argument for Trump's fiscal policies v. Biden's economic disasters.  Both are a train wreck.

Neither are going to resolve the quagmire that we are in; neither are going to be good for this country.

Then there's also the argument that we cannot sustain the ILLEGAL invasion.....

I wish there were brighter days ahead ... but another 4 years is a very, very long time and I just don't think we're going to be able to dig ourselves out of the hole that we are suffocating in.

[DB]

If there is any fix to all this, it will be past my lifetime. It will take decades to run its course.

[banddag]

Only applies to people making 1 million or more in taxable income and according to Forbes there are loopholes in the plan-it will only affect a very small amount of people. . Vast majority of Americans, even Republicans,  believe billionaires should pay a higher tax rate.

Yes they have the top tax rate but they have so many ways to take income as loans at the top tax rate is  never met or avoided entirely

NYT   article  top 400 billionaires only paid 23% of their wealth in taxes each year due to loopholes and such in 2018

https://www.nytimes.com/interactive/2024/05/03/opinion/global-billionaires-tax.html

[mountaineer]

I've never seen a definition of "loophole."

[DB]

Only applies to people making 1 million or more in taxable income and according to Forbes there are loopholes in the plan-it will only affect a very small amount of people. . Vast majority of Americans, even Republicans,  believe billionaires should pay a higher tax rate.

Yes they have the top tax rate but they have so many ways to take income as loans at the top tax rate is  never met or avoided entirely

NYT   article  top 400 billionaires only paid 23% of their wealth in taxes each year due to loopholes and such in 2018

https://www.nytimes.com/interactive/2024/05/03/opinion/global-billionaires-tax.html

Says the tax the "rich" "conservative"...

All good as long as it is someone else that pays. While you cheat on your taxes...

Really love the "wealth" part in taxes... Not income, but wealth...

[mountaineer]

Stephen Moore
@StephenMoore
Capital gains tax rates under Joe Biden's plan:
Georgia - 50.09%
Iowa - 50.3%
Kansas - 50.3%
Idaho - 50.4%
Nebraska - 50.44%
Maine - 51.75%
Oregon - 54.5%
Minnesota - 55.45%
New York - 55.5%
New Jersey - 55.5%
California - 57.9%
This will bring vital investment in start-up companies to a standstill!
3:57 PM · May 7, 2024

Thomas Del Beccaro
@tomdelbeccaro
The result will be predictable:
1.  Assets sales will drop because the tax on sales is too high.
2. Asset values will drop because the high tax will weaken supply.
3. Capital gains tax revenue will drop as sales drop.
4. CA saw a drop in Public Offerings of stock from 191 in 2022 to just 25 in 2023 causing higher deficits in CA. The proposed Biden tax will only make that worse as companies look for other states for lower taxes.  That will result in CA Democrats looking to raise income taxes.
5.  Less public offerings will reduce economic growth because companies will not be able to raise capital to expand and hire employees. 
As Calvin Coolidge said, a tax that is too high is not paid.   Once again.
8:19 PM · May 7, 2024