US Economy thread

[Jockey]

Did you seriously click that ad that has been on twitter for weeks for a movie about the national debt and then post a snippet of it here?

He's gunning for roqqet's crown.

[rocket surgeon]

    something like 11 out of last 13 jobs reports have had to be REVISED DOWN. 

    most people don't see the revisions-

       that's what weekend at Bernie's is hoping

[MU82]

    something like 11 out of last 13 jobs reports have had to be REVISED DOWN. 

    most people don't see the revisions-

       that's what weekend at Bernie's is hoping

That happens often, regardless of who the president is.

Most people are intelligent enough to know that.

But Dementia Don - the only modern president to end up with fewer employed Americans than when he took office - is grateful that his mindless cultists aren't among the knowledgeable.

[Pakuni]

Did you seriously click that ad that has been on twitter for weeks for a movie about the national debt and then post a snippet of it here?

Just wait until he posts a clip of "2000 Mules."

[Hards Alumni]

Hards needs someone to love hardsley:

https://x.com/nocinerik/status/1786418988546699288?s=46

The US prints money because it can because it is backed fully by the US military and is the reserve currency of the world.

Do I own other things because I believe that this may not always be the case?  Yes.

But people crying about the national debt have been doing it for 50+ years.  And yet, here we are.  Still on top.

[Herman Cain]

This isn't the whole story. The plan is to raise the top cap gains ordinary rate to 39.6% (from 20%)

Then there's a proposed 44.6% rate that would apply to people that have income over $1,000,000/year. To earn over $1,000,000/year in capital gains, and to have a sustainable drawdown plan, you'd need to have ~$25,000,000 in investment holdings. Nobody on scoop has $25MM in assets or over $1,000,000 in income, so I think we're safe.

Source, if you'd like to read more - https://www.kiplinger.com/taxes/biden-calls-for-doubling-capital-gains-tax-rate

My guess is a lot of Scoopers would be impacted by this.

There are folks and families who have built up businesses over a life time . If they sell , The Govt take from the deal would more than double.

Also people who have worked their entire year for large companies and accumulated significant stock holdings. This is especially true for folks who were employed by tech companies that have grown and dominated.

Someone who owns a family farm and now its in the path of progress. So that acreage value sky rockets , even if it stays a farm over 40 50 years there has been increases

A well compensated manager who happens to sell a highly appreciated home could easily make over a million if the home sale exceeds the excluded amount

An individual investor who has long term holdings with huge imbedded capital gains would be impacted

I know for sure on many fronts these proposed tax increases will hit me and my family.

[TSmith34, Inc.]

    something like 11 out of last 13 jobs reports have had to be REVISED DOWN. 

    most people don't see the revisions-

       that's what weekend at Bernie's is hoping

Oh. I guess that negates the 7.5M jobs created in the last two years then. Thanks for setting us straight.

[The Hippie Satan of Hyperbole]

Yeah I’m not sure this is a great idea. I would rather see a good look at increasing dividend tax rates and leave capital gains rates alone.

[Skatastrophy]

My guess is a lot of Scoopers would be impacted by this.

There are folks and families who have built up businesses over a life time . If they sell , The Govt take from the deal would more than double.

Also people who have worked their entire year for large companies and accumulated significant stock holdings. This is especially true for folks who were employed by tech companies that have grown and dominated.

Someone who owns a family farm and now its in the path of progress. So that acreage value sky rockets , even if it stays a farm over 40 50 years there has been increases

A well compensated manager who happens to sell a highly appreciated home could easily make over a million if the home sale exceeds the excluded amount

An individual investor who has long term holdings with huge imbedded capital gains would be impacted

I know for sure on many fronts these proposed tax increases will hit me and my family.

I mean, right, but a one time liquidity event being slightly less profitable i for every dollar over $1MM s different from the claim that Biden is raising cap gains taxes to 45%.

[rocket surgeon]

Oh. I guess that negates the 7.5M jobs created in the last two years then. Thanks for setting us straight.

  Jesus h. chriminey man, post covid,  f'ing pee-wee Herman could have been in the house and those jobs would have been retrieved.  just wait to see how union dude weekend at Bernie's flushes the UAW down the chitter for his incessant dreams of climate blah-blah and they don't even know what's going to hit them 

[Uncle Rico]

  Jesus h. chriminey man, post covid,  f'ing pee-wee Herman could have been in the house and those jobs would have been retrieved.  just wait to see how union dude weekend at Bernie's flushes the UAW down the chitter for his incessant dreams of climate blah-blah and they don't even know what's going to hit them

See, mutaman?

[TSmith34, Inc.]

  Jesus h. chriminey man, post covid,  f'ing pee-wee Herman could have been in the house and those jobs would have been retrieved.  just wait to see how union dude weekend at Bernie's flushes the UAW down the chitter for his incessant dreams of climate blah-blah and they don't even know what's going to hit them

Dumbest unnatural carnal knowledge on the Internet

[4everwarriors]

Da Buffoon's goin' down in MI wit both the UAW and Arabs, hey?

[Uncle Rico]

Dumbest unnatural carnal knowledge on the Internet

Don’t worry, he can be topped in just a few posts below

[dgies9156]

My guess is a lot of Scoopers would be impacted by this.

There are folks and families who have built up businesses over a life time . If they sell , The Govt take from the deal would more than double.

Also people who have worked their entire year for large companies and accumulated significant stock holdings. This is especially true for folks who were employed by tech companies that have grown and dominated.

Someone who owns a family farm and now its in the path of progress. So that acreage value sky rockets , even if it stays a farm over 40 50 years there has been increases

A well compensated manager who happens to sell a highly appreciated home could easily make over a million if the home sale exceeds the excluded amount

An individual investor who has long term holdings with huge imbedded capital gains would be impacted

I know for sure on many fronts these proposed tax increases will hit me and my family.

Herm's not wrong.

If you're a family farmer in Iowa whose sons want to inherit the farm, this could be a killer.

If your family owns a small business structured as a Subchapter "S" Corp, this could be a killer too.

Keep in mind that a substantial amount of today's capital markets are investments held for the benefit of ordinary people. And while "they" claim that higher capital gains and wealth taxes will only be on the wealthy, how long will that last? Keep in mind that "fair" is what's ever in your best interests and "rich" is an abstract noun predicated on whoever is making the definition.

[MUBurrow]

Herm's not wrong.

If you're a family farmer in Iowa whose sons want to inherit the farm, this could be a killer.

If your family owns a small business structured as a Subchapter "S" Corp, this could be a killer too.

How? The only impact this would have on family business succession planning is if parents are selling the business to children.  Assuming that is done on a seller financing installment sale, this would just increase the tax paid on the installment payments.  I think you're conflating eliminating basis step up with actually increaseing a transfer (gift or estate) tax burden, which would have a much more direct impact on transferring illiquid assets.

[Jockey]

I mean, right, but a one time liquidity event being slightly less profitable i for every dollar over $1MM s different from the claim that Biden is raising cap gains taxes to 45%.

If you can’t lie, you can’t be a MAGAt.

[SoCalEagle]

  Jesus h. chriminey man, post covid,  f'ing pee-wee Herman could have been in the house and those jobs would have been retrieved.  just wait to see how union dude weekend at Bernie's flushes the UAW down the chitter for his incessant dreams of climate blah-blah and they don't even know what's going to hit them

So one president should be exempt from economic statistics because covid impacted the job numbers, but the other one should not be exempt from economic statistics because covid impacted inflation?

Do you hear yourself?  I hope you limit your silly statements to chat boards and don't make them in public.  You would be laughed out of any serious conversation on the economy. 

[SoCalEagle]

Herm's not wrong.

If you're a family farmer in Iowa whose sons want to inherit the farm, this could be a killer.

If your family owns a small business structured as a Subchapter "S" Corp, this could be a killer too.

Keep in mind that a substantial amount of today's capital markets are investments held for the benefit of ordinary people. And while "they" claim that higher capital gains and wealth taxes will only be on the wealthy, how long will that last? Keep in mind that "fair" is what's ever in your best interests and "rich" is an abstract noun predicated on whoever is making the definition.
 

So exempt farms.  Next. 

[JWags85]

I mean, right, but a one time liquidity event being slightly less profitable i for every dollar over $1MM s different from the claim that Biden is raising cap gains taxes to 45%.

By and large I think its just pre-election bluster.  I don't think this would pass and I don't think its going to gain more momentum than that.

My biggest fear with it, and not even in some hysterical slippery slope worry, is fundamentally changing the way capital gains are viewed.  If its the first step in wanting to align capital gains with normal income, that's worrisome and something I really don't like.  Especially because many younger people in my age gap and younger (sub 40) foolishly think of capital gains as something that only impacts billionaires and CEOs.

20% is a phenomenal cap gains rate, if there was a successful push to make it higher (say 30% on the high end), its not great but something that could be stomached.  But a rate that would mean you're losing 50% of your capital gains between federal and state taxes on the sale of a business or well built stock portfolio is gross to me.  YMMV