Do people think that capital gains are taxed at a lower rate than 'ordinary' income?
I’m just wondering.
Say I think it’s going to be a cold winter and also that whoever is elected President next year and whoever controls Congress will be vehemently opposed to nuclear power. As a result I think natural gas prices will double, thus daily rates for drilling equipment will double.
It takes me countless hours of research to come to this conclusion, which could still be wrong. But I’ve reached it before the market did, and I buy XYZ Drilling at 7X the street’s prediction of forward earnings, because I think that, BEFORE TAXES, the street is off.
When the market decides I was right, the price increases – but NOT by 7X , rather by 7X .30 – because those earnings will be TAXED.
Thus my gain is 35% LESS because of the corporate level tax.
The corporate level tax cost me /share.
And THEN the gain that’s left is taxed. And if the market was quick to figure out that I was right, even the remaining gain is STILL taxed at ordinary rates!
"Either way we get alot of our monies back when we file each year and the rest goes to places that are needed."
Puh no, you might overwithhold, so do I to avoid penalties, but what you get back relative to what you paid….. And "dues" – - – - and "things we need" – no, we don’t "need" most of what the government buys with the money. We don’t need a highway to nowhere.
Zeldar trading fees are /trade, almost anyone can afford to invest.
I had ZERO net worth 15 years ago, I now have over a quarter million. Started out with my home, bought it with 90% debt, paid off the 10% second mortage, paid down the first mortgage, sold (well, divorced the ex-wife who now is paying me back my share based on the appraised value at the time of the divorce plus an annual increase for each year on the amount left to be paid) and I’ve since invested some of the proceeds in the stock market. I have a difficult job but investing is more difficult, just the time involved. Like anything else, you have to become interested in it, then you don’t see it as work.
Zeldar (a) why should it be a function of what you can afford – why should you be punished for success? and (b) that’s not true – 50% of Americans own stocks and/or bonds.
April 22nd, 2010 at 3:16 pm
I made some money on some stocks I sold last year and that income was reduced before it was taxed so technically it was taxed at a lower rate………..
April 22nd, 2010 at 3:16 pm
I thought Capital Gain taxes were history?
April 22nd, 2010 at 3:16 pm
Taxes stink no matter which way you look at it but are necessary for daily living.
Either way we get alot of our monies back when we file each year and the rest goes to places that are needed.
People need to stop fussing and pay their dues and quit trying to cheat the system.
April 22nd, 2010 at 3:16 pm
That makes perfect sense to me. People who can afford to invest money are wealthy, and this money is over and above any living expenses that they have. They can afford to be taxed at a higher rate, and this helps lower taxes for working people who are having a harder time making ends meet.