Author Topic: Potential capital gains tax cut  (Read 561 times)

jpdx

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bacchi

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Re: Potential capital gains tax cut
« Reply #1 on: August 01, 2018, 08:51:52 AM »
A stay will be issued almost immediately and the case will wind its way to the SC.


FIRE@50

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Re: Potential capital gains tax cut
« Reply #2 on: August 01, 2018, 08:57:12 AM »
Applying inflation is just silly. There is no shame in the cash grabbing.

Let's look at the opposite of this. Will mortgages start to have a provision that raises your monthly payment based on inflation?

seattlecyclone

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Re: Potential capital gains tax cut
« Reply #3 on: August 01, 2018, 09:27:16 PM »
I think applying inflation to capital gains makes a lot of sense. We already have our tax brackets indexed to inflation, because we recognize that the number of dollars representing a certain amount of wealth changes over time, so the number of dollars at which you start owing extra tax should change with it.

If you bought an asset for $1,000 in 2000 and sold it for $1,200 in 2018, you have gained dollars but lost wealth. If you had exactly kept up with inflation, you would have instead had more like $1,500. I think it's fairer to tax changes in wealth rather than changes in dollars.

That said, I'm very skeptical that such a significant change can be enacted by executive fiat rather than through an act of Congress, and I also think the rationale for having a lower tax rate for capital gains becomes much weaker if you're taxing changes in wealth rather than changes in dollars.

MDM

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Re: Potential capital gains tax cut
« Reply #4 on: August 01, 2018, 09:37:53 PM »
"The administration is studying a proposal to...."

This sentence has been completed in numerous ways, probably ever since George Washington's first term.  Most of those never happened.