Comments on Letters from the End of Civilization: Capital Gains Tax

Only the new earnings get taxed. Taxes on the orig...

2008-07-24T01:24:00.000-07:00

Only the new earnings get taxed. Taxes on the original 6000 has been paid.

So the $9562 is taxed; and I think it's on a scale.

Nevertheless, the money you have after you pay the taxes, will usually not buy as much as it could have ten years earlier. So why bother to save at all? You need to be making 25% per year consistently to come out ahead... So why bother? Better borrow

LOL - if I sell at a loss does the government come...

2007-11-07T11:15:00.000-08:00

LOL - if I sell at a loss does the government come in and give me 15% of my loss back? Class? That's right - the answer is "no".

If you sell an investment at a loss, you can write...

2007-02-21T08:15:00.000-08:00

If you sell an investment at a loss, you can write that loss off, so the government does in a way share in your risk. They only make money if you do, and will lose tax income if you lose money on the investment.

This doesn't change the fact that you are being double taxed, it only suggests that the government does in a small way share some of the risk.

Actually it's a graduated scale, not 15% and even ...

2005-09-27T10:17:00.000-07:00

Actually it's a graduated scale, not 15% and even if it was 1% it's still taxing money that was already taxed.

They don't share in the risks, just the rewards. That's what makes it inherently unfair, and fundamentally wrong.

agree

but long term cap gains is 15% or le...

2005-06-20T16:49:00.000-07:00

agree

but long term cap gains is 15% or less not 40%

...people with stock in IBM?

2005-06-11T00:21:00.000-07:00

...people with stock in IBM?

...but who holds a single investment for 10 years?...

2005-06-09T11:14:00.000-07:00

...but who holds a single investment for 10 years?

Not me.

But your example says 10 years....

2005-06-09T00:12:00.000-07:00

But your example says 10 years....

Actually, the long-term rate is a graduated scale....

2005-06-08T12:03:00.000-07:00

Actually, the long-term rate is a graduated scale. This is not the case for short-term gains.

From Bankrate.com,

Remember, each of these is the long-term capital gains rate. In most cases, that means you have to hold an asset for more than a year before you sell it. If you cash it in

The capital gains rate is 25% - it was lowered by ...

2005-06-07T23:22:00.000-07:00
The capital gains rate is 25% - it was lowered by the Democrats under Clinton. After being raised by the Republicans under Reagan. Also, those nice Democrats gave everyone a $250,000 deduction, which can be combined between spouses. So you only pay the tax after you earn as much as a half-million dollars. When applied to real estate you can also deduct any maintenance or improvement costs

Comments on Letters from the End of Civilization: Capital Gains Tax

Only the new earnings get taxed. Taxes on the orig...

LOL - if I sell at a loss does the government come...

If you sell an investment at a loss, you can write...

Actually it's a graduated scale, not 15% and even ...

agree but long term cap gains is 15% or le...

...people with stock in IBM?

...but who holds a single investment for 10 years?...

But your example says 10 years....

Actually, the long-term rate is a graduated scale....

The capital gains rate is 25% - it was lowered by ...

agree

but long term cap gains is 15% or le...