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Capital Gains Rate Could Jump 119% Under Gang Of Six
Investor's Business Daily ^ | 7/20/2011 | Jed Graham

Posted on 07/20/2011 4:15:35 PM PDT by Slyscribe

The key to the Senate Gang of Six deficit-cutting grand bargain is the combination of higher tax revenue with lower tax rates.

The former makes Democrats swoon and Republicans are sweet on the latter.

The first date was a hit, with a surprising number of senators declaring their everlasting love and President Obama giving it his blessing on Tuesday. But just how much do the two sides know about their partner?

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: budget; capitalgainstax; collapse; debt; deficit; economy; estate; gang; gangof6; gangofsix; gangrape; real; taxes

1 posted on 07/20/2011 4:15:37 PM PDT by Slyscribe
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To: Slyscribe

Lock and load!


2 posted on 07/20/2011 4:16:47 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Slyscribe

How can you have a 119% tax rate?.......


3 posted on 07/20/2011 4:19:40 PM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: Slyscribe

LOL! That’s a direct attack against developing real estate—like shooting themselves in their feet.


4 posted on 07/20/2011 4:20:08 PM PDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: EGPWS

Starve the beast.


5 posted on 07/20/2011 4:20:33 PM PDT by freespirited (Stupid people are ruining America. --Herman Cain)
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To: Slyscribe

The key to the Senate Gang of Six... grand bargain is the combination of higher tax revenue...

So, isn’t this an end-run around the constitution? All bills for raising revenue are to originate in the House. Call your congressman!


6 posted on 07/20/2011 4:20:55 PM PDT by ngat
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To: Red Badger

The capital gains rate is currently 20%. Increasing it by 119% means it would then be 43.8%


7 posted on 07/20/2011 4:23:49 PM PDT by PapaBear3625 (When you've only heard lies your entire life, the truth sounds insane.)
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To: All

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8 posted on 07/20/2011 4:24:40 PM PDT by DeoVindiceSicSemperTyrannis (Want to make $$$? It's easy! Use FR as a platform to pimp your blog for hits!!!)
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To: Red Badger
How can you have a 119% tax rate?.......

You can't however you can have an increase of 119% from existing taxes.

9 posted on 07/20/2011 4:25:18 PM PDT by EGPWS (Trust in God, question everyone else)
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To: PapaBear3625; EGPWS

Okay.
Got it!.....


10 posted on 07/20/2011 4:33:45 PM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: Slyscribe
We have it all ladies and gentlemen. You can have chocolate & vanilla... yin & yang... up & down...

EVERYBODY will love this deal... EXCEPT for the taxpayers.

Tax INCREASE along with RAISING the debt ceiling.

Call it what it is... SMOKE & MIRRORS.

11 posted on 07/20/2011 4:46:22 PM PDT by VideoDoctor
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To: Slyscribe

The Repubies involved with this piece of crap should be primaried with extreme prejudice the next time around.

This is bullsh1t!!


12 posted on 07/20/2011 4:47:59 PM PDT by upchuck (No increase PERIOD! Hope & Change = Ball & Chain)
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To: Slyscribe

Nov. 2012 cannot come too soon.. to get rid of some of the gang of six or seven sycophants..

The Tpcaucus is still growing strongly..


13 posted on 07/20/2011 4:58:00 PM PDT by hosepipe (This propaganda has been edited to include some fully orbed hyperbole...)
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To: upchuck
Kill Real Estate with interest deductions

Now a Business or Stocks will become stagnant because of high capital gains rates as people will never sell and pay the high tax.

Any wonder why the stock market was below 1,000 on the Dow before Reagan.

14 posted on 07/20/2011 5:01:32 PM PDT by scooby321
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To: All

Capital gains taxes would go from 15% now to 32.8% with this hideous deal. Call your reps and demand no tax hikes and real spending cuts. More money flowing into D.C. will mean no incentive to cut spending.


15 posted on 07/20/2011 5:06:48 PM PDT by BushMeister ("We are a nation that has a government - not the other way around." --Ronald Reagan)
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To: Slyscribe

Call Boehner’s, Cantor’s, and Chambliss’ offices...I did and left very supportive and angry (Chambliss’) messages...their staff listen well and take notes.


16 posted on 07/20/2011 5:08:15 PM PDT by CincyRichieRich (Keep your head up and keep moving forward!)
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To: Slyscribe
Gee, that won't cause people to dump their stocks before the new rate kicks in.
17 posted on 07/20/2011 5:43:57 PM PDT by Trod Upon (Obama: Making the Carter malaise look good. Misery Index in 3...2...1)
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To: Slyscribe

They predict increases in revenue on static data. There will be NO increase!!
Raise taxes without benefit to the payer is a disaster. At least Bill Clinton SAID, “The era of big government is over.” If you are in the productive/achiever realm, this meant ‘full steam ahead’. Obama means ‘death spiral’.


18 posted on 07/20/2011 5:46:10 PM PDT by griswold3 (Character is Destiny)
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To: upchuck

Since this article is about percentages. Lets play.. : )

Capital gains has been lowered to a point where those who sit in front of a keyboard, on Etrade pay less of a percentage in tax then a full time (would you like fries with that) McDonald’s employee.

So either have the investor class pay as much of a percentage of their income as that Mcdonald’s employee or lower the taxes of the McDonald’s employee to be the current tax rate of capital gains.


19 posted on 07/20/2011 5:51:25 PM PDT by moshiach
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To: moshiach

Apples and oranges. Capital gains and earned income are completely different and should be treated differently.

Secondly, your example is incorrect, a mcdonalds burger flipper is likely taxed at 10% or 15%, and a slew of deductions are applied to their earnings. I am sure many of these folks fit into the 47 percent not paying any income tax.


20 posted on 07/20/2011 6:04:52 PM PDT by ilgipper (political rhetoric is no substitute for competence (Thomas Sowell))
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To: Slyscribe

Capital gains tax, taxes on interest and dividends and estate tax should all be abolished.


21 posted on 07/20/2011 6:37:58 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: ilgipper

The rich will get richer, the poor will get poorer....

And us poor bastards will get stuck with the bill... Again.


22 posted on 07/20/2011 6:37:58 PM PDT by EQAndyBuzz (As long as the MSM covers for Obama, he will be above the law)
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To: PapaBear3625

Just wait - they’ll have to go to a tax rate of 119% to pay for the deficit.


23 posted on 07/20/2011 6:43:28 PM PDT by jda ("Righteousness exalts a nation . . .")
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To: ilgipper
Lol 10% or 15%? When I was climbing up the ladder to middle class I worked at McDonald's. I paid slightly over 30% in taxes. The only break I got was eating the Big Mac that didn't sell at closing. During that time I do remember Congress big concern was lowering the capital gains tax for the overworked investment class.
24 posted on 07/20/2011 7:08:30 PM PDT by moshiach
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To: moshiach

What tax bracket were you in the highest rate now for the ‘rich’ is 36%. It was 39.5% under Clinton. 15% is the rate up to around $35,000 adjusted income,deductions, etc. How much were you bringing in?

As far as your class warfare BS, you may want to look for a different forum.


25 posted on 07/20/2011 8:08:56 PM PDT by ilgipper (political rhetoric is no substitute for competence (Thomas Sowell))
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To: ilgipper

You forgot about payroll tax. Feds never forgot about payroll tax. :/

As far as your class warfare comment. The Cold War was a class war the US fought and won.

NAFTA wasn’t passed during the Cold War nor was the capital gains tax rate dropped to 15%. Why? Cause that giant sucking sound would have lost us the Cold War.

During the Cold War (US) capitalism had a simple direct winning sell point, to working wo\men; we will pay you for an honest day’s work, those (USSR) commies wont.

We need to get back to our capitalist roots. If that means fighting and winning another class war. This time with the lazy sloth investment class who wants to pay 15% tax while the working man pays double that. Game on.


26 posted on 07/21/2011 4:18:36 AM PDT by moshiach
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To: Trod Upon
Gee, that won't cause people to dump their stocks before the new rate kicks in.

Absolutely not. Wait until I dump mine first...

27 posted on 07/21/2011 4:44:03 AM PDT by John123 (US$ - I owe you nothing. Euro - Who owes you nothing.)
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To: moshiach

Cool. So you are on the record for higher taxes. That is completely inconstant with this forum, and the conservative philosophy. You think the government confiscating more is going to help all these employees make more money? As far as i observe, the tax burden on lower brackets is lower than ever as there are so many credits and breaks that nearly half pay nothing.

Payroll taxes are out of control for employers as well, so long before someone pays their capital gains tax, they have been paying for years for each employee they hire. A low capital gains tax is good. It should be lower, or gone completely to help spur much needed growth. I’d rather focus on lowering all taxes than somehow justifying raising this rate out of ‘fairness’.


28 posted on 07/21/2011 5:38:29 AM PDT by ilgipper (political rhetoric is no substitute for competence (Thomas Sowell))
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To: Slyscribe

The only people that should be seeing a higher tax rate are the freeloading deadbeats that pay no income tax at all. Let’s put a 10% minimum income tax on ALL income, and get rid of the so-called “earned income credit” which is nothing but welfare.


29 posted on 07/21/2011 5:57:54 AM PDT by meyer (We will not sit down and shut up.)
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To: moshiach
Capital gains has been lowered to a point where those who sit in front of a keyboard, on Etrade pay less of a percentage in tax then a full time (would you like fries with that) McDonald’s employee.

The typical McDonald's employee pays NO federal income tax at all, and many get an "earned income credit" welfare check as well. Precious few of them, most likely managers, dip into the lowest marginal tax bracket.

30 posted on 07/21/2011 6:02:02 AM PDT by meyer (We will not sit down and shut up.)
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To: moshiach
You forgot about payroll tax. Feds never forgot about payroll tax. :/

Payroll tax is not federal income tax. It's a separate issue, and one which also needs to be dealt with.

We need to get back to our capitalist roots. If that means fighting and winning another class war. This time with the lazy sloth investment class who wants to pay 15% tax while the working man pays double that. Game on.

Wow - there's a liberal in the woodpile. When 47% of the wage earners in this country pay NO FEDERAL INCOME TAX AT ALL, how do you come up with the idea that the "working man" pays double the income tax that the investment class pays? The facts don't agree with you.

31 posted on 07/21/2011 6:09:33 AM PDT by meyer (We will not sit down and shut up.)
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To: ilgipper

I’m an advocate for lower income and payroll taxes. As I said in my original response to you, income and payroll taxes taxes need to come down to be on par with capital gain tax. Or capital gain tax need to come up to be on par with income and payroll tax. Your response was “apples and oranges.”

As a youth growing up during the Cold War.. The (US) capitalist message was loud and clear plus inspiring, work hard you will be rewarded. For those who grew up during the Cold War we read news stories about how (Soviet) commie elite lived lavishly in Dachas off the backs of their hard working comrades.

Replace commie elite with investor class, same story.


32 posted on 07/21/2011 6:25:25 AM PDT by moshiach
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To: moshiach

Daytraders pay more than 15% on profits -when they profit.

The “working class” (Marxist term) does not pay 30% federal income tax.

Anyone working at McDonalds will pay much less than 15% after deductions and is qualified for such things as SNAP, WIC, etc.

3 strikes, you’re out!


33 posted on 07/21/2011 6:34:22 AM PDT by Justa
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To: Justa
Yet another one who leaves out payroll tax.

Here is a picture of it:

Image and video hosting by TinyPic

You can ignore it, but it does no't go away.

34 posted on 07/21/2011 6:41:03 AM PDT by moshiach
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To: scooby321

don’t worry - under the Obama administration real estate and the stock market have both done poorly enough that there will be no capital gains to tax— so this isn’t really a tax increase. I only wish this was /s


35 posted on 07/21/2011 6:42:17 AM PDT by Mom MD (The country needs Obamacare like Nancy Pelosi needs a Halloween mask)
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To: SVTCobra03

Agree. They are all double taxation. The money put into those investments had already been taxed.


36 posted on 07/21/2011 6:43:58 AM PDT by Mom MD (The country needs Obamacare like Nancy Pelosi needs a Halloween mask)
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To: moshiach

Populists like yourself, fail to realize that your belief system is closely related to Marxism.

Those “Capital Gains” taxes are made on money that has already been taxed. The holder of those fees also pays regular income taxes on that income, at normal rates at the end of the year. The “Capital Gains” tax is an added tax, on top of all other taxes, obligated by the investor.

This stupidity will guarantee the markets to decline dangerously. After the markets crash, you will undoubtedly be overjoyed, but it is those markets that indicate Industrial and economic health. This economy cannot do well with out the market. Investor money is how they are supported and financed.


37 posted on 07/21/2011 6:51:12 AM PDT by PSYCHO-FREEP (Always Remember You're Unique.......(Just Like everyone Else.))
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To: moshiach

OK Game on. What about this lazy sloth who is part of the reviled rich (hubby and I together make just over the limit that Obama considers rich) To qualify for “rich status” hubby and I both work > 80 hours per week at times. We frequently put in 14 hour days, and we work nights, holidays and weekends. Slothful, huh.
Last year we paid over 100K in federal taxes. We currently have 2 kids in college to the tune of 80K per year without any financial aid, because we are “rich” Lazy, huh
Being responsible and conservative adults, we are saving for our retirement. We have no illusions we will receive any social security, etc... In order to save for our retirement, we have invested heavily in our 401ks
So I guess that makes us part of the horrible investment class. After paying the highest tax rate, and over 100K last year in federal taxes, just how much more would you like me to pay in capital gains on my well earned investmeents????
I would say those who pay no taxes and live on Obama money are slothful, not those who actually EARN a living.


38 posted on 07/21/2011 6:53:11 AM PDT by Mom MD (The country needs Obamacare like Nancy Pelosi needs a Halloween mask)
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To: meyer

“Payroll tax is not federal income tax. It’s a separate issue, and one which also needs to be dealt with. “

It’s a separate issue, to you, not to me.

We have a joke of a tax-code that presently rewards this lazy message “let your money work for you” and you will pay less in taxes then the man who actually has to work for a living.

How has this message worked for the US? We have more US Debt now, than we did during the Cold War.

What is the difference? Back then hard work was rewarded plus supported in our US Tax code. Today it is not. You are a sucker if you work hard, that’s been the message since Clinton’s “we are a consumer based economy,” translation.. sit, relax, buy stuff. Not exactly an inspiring Reagan “tear down this wall” message.

As a country we either get back to our capitalist roots. Or the result will be an increasingly lost vulnerable young generation coming up who thinks hard work is tweeting. :/


39 posted on 07/21/2011 7:12:18 AM PDT by moshiach
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To: moshiach

“Arise, ye prisoners of starvation....”


40 posted on 07/21/2011 7:16:32 AM PDT by dfwgator
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To: Mom MD

Mom MD you work for a living.. so why waste your time defending people who don’t.

In past posts I have called for ending property taxes, encourage ownership. Plus lowering taxes on income and payroll taxes, encourage work.


41 posted on 07/21/2011 7:28:41 AM PDT by moshiach
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To: Slyscribe
The US housing market is very much in the doldrums. Stagnant, but not dead. It's like a sailing ship in becalmed seas. The ship is fit to sail, but there is no wind.

Some part of why homes are purchase certainly must be the tax deduction one receives from mortgage interest payments.

Are we to understand that this deduction is going to be taken away? If so, and using the sailing ship analogy from above, the housing market will surely suffer. The "ship", tho fit to sail above the waterline, has a hull encrusted with barnacles...and even if the wind rises, the ship won't sail nearly so well as it did with a clean hull.

The "value add" of the loss of the mortgage deduction will be the home rental market. If rental payments equate to mortgage payments, but without the hassle of RE taxes, fixup expenses, and credit risks associated with yet another downturn (the "upside down" syndrom); then, why not rent??

Nothing like another idiotic plan from our idiot savant representatives in the federal government to make life a bit more pleasant for all of us, what?

42 posted on 07/21/2011 7:32:16 AM PDT by Logic n' Reason (The stain must be REMOVED (ERADICATED)....NOW!!)
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To: Red Badger

It think they mean it will increase 119%.

But then again, the normal laws of mathematics do not apply in DC.


43 posted on 07/21/2011 7:33:51 AM PDT by Tijeras_Slim
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To: Tijeras_Slim

Hey, let’s raise the Capital Gains Rate by 119% !
That should get this economy going .......................overseas................


44 posted on 07/21/2011 7:36:31 AM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: Slyscribe

Boehner should just stop this nonsense and say that spending bills have to originate in the House—Senate plans are DOA.

I can dream, can’t I?

These RINO Senators are the worst.


45 posted on 07/21/2011 7:36:43 AM PDT by exit82 (Democrats are the enemy of freedom. Sarah Palin is our Esther.)
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To: PSYCHO-FREEP
Those “Capital Gains” taxes are made on money that has already been taxed.

Same story for income tax, payroll tax, and pretty much everything else. The McDonald's, customer pays a sales tax on that Happy Meal, yet the employer and employee still has to pay a tax (income/payroll) on money that was already (sales) taxed.

Or my pet peeve, why do I have to pay a transit fare or toll for a transit system (bus/rail/bridge/road) that my taxes paid on? I have always considered that a double tax.

There are example after example of double tax, capital gains tax is not even the worst one.

Income tax and payroll tax, is arguably the most egregious example of double taxation. Gore ran on "lock box" saying he was going to stop Congress from treating FICA like it was a part of the (income tax) general fund. He lost.

46 posted on 07/21/2011 8:09:25 AM PDT by moshiach
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