I read Reddit as well. The lefties always say if tax the billionaire you’d get billions per year. Smh
They don’t get that’s stock. They don’t get paid billions per year. They think Elon musk has
Billions in cash. He has very little cash. It’s all stock in Tesla and space x
This is the case with most wealthy people. Even those in middle class. Most don’t have their wealth deposited in bank in cash. Most have their retirement funds parked in the market hoping that it will keep up with inflation.
This brings me back to the original comments. Big spending will bring inflation. You will need to keep up with inflation. If you sell your stocks for cash and big inflation comes, your spending power is diminished. Yes your 401K values might rise but so will your cost or retirement. That $25K car you can buy today will be $50K in 20 years or even 10 years. While your salary might go up due to big inflation, so does your tax bill and cost of living. This allows higher tax collections relative to when the spending happened and allows the government to pay off debt with cheaper dollars. Where this really gets sticky is when your currency is traded in the world. It is easy to say all of this in the local market but everything is in the world market. There are too many things you can’t control.
One of the so called safest investments in high inflation is real & hard assets. But real estate is a real wild card given the pandemic. I think commercial real estate is risky while buying farm land in the sticks might pay off. A few years ago, I bought a old and very used tractor. I paid more for it than when it sold new 50 years ago. So a tractor that has likely been depreciated and rebuilt more than once sells more today than 50 years ago. Why? Because the cost of a new tractor of it’s size and function is $75K. If tomorrow, mass inflation happens and steel prices soar due to devalued currency, that $75K new tractor will cost $100K plus if you need to finance it, it will cost you more in financing. Before you know it, you wake up and you are the new Venezuela. Cash is dangerous in times of big inflation.
I want to buy a tractor. I want to turn it into a tank.
Get a dozer instead. A flat tractor tire will stop your killtractor. Make Killdozer Great Again!
I want to buy a real Tank but they’re expensive and hard to find
Does that mean you’ll stop being obsessed with alleged pedophila? Didn’t think so
As has been explained, the market did well in the 90s for two reasons. First, Clinton and Gingrich reached agreement on taxes and spending. Taxes went up, spending was controlled, and we had a couple of years when those almost balanced. I suspect neither of us will see that again in our lifetimes. Second, the tech boom brought the whole market up. Related incomes soared and tax collections went up.
You can’t just make a broad statement about taxes and the stock market without acknowledging the context. Had taxes simply been increased with anything else happening, I expect the market and the economy would have been, at best, stagnant like the 70s.
Do you mean Creepy Uncle Joe? I never called him a pedophile, he’s just a creep.
While we’re on the subject, what is with your obsession with Trump and his daughter? That’s very weird.
He cant wait to come back in 4 years when the grade school girls grow up some so he can watch them dance again.
There have been a couple of non-partisan analyses of Biden’s tax plans. Basically, he’s saying that he will overturn the 2017 tax act (which will raise taxes for about 90% of taxpayers) and institute a rather draconian tax structure for those with incomes greater than $400K. But what he doesn’t state is that the estimated tax increase don’t come close to paying for his spending plans. The estimates are that his total financial plans will reduce GDP by 1-1.5%.
We have made a number of financial moves in anticipation of Biden’s election because we have always been fairly aggressive investors. My wife and I each have traditional IRAs and we have sold enough (mostly stocks) to fund next year’s RMDs, and part of 2022’s, so we don’t have to sell if the market sucks. Since the IRAs are mostly mutual funds, we also eliminated automatic reinvestment of dividends so we should not be forced to have sell anything for 2022. Hopefully, things will settle a bit by then. Our IRAs today, excluding the amounts for RMDs, are about 55% / 45% stock/bonds.
In our post tax account, I sold a lot of stock in January, and then again in July-August. We’ll have a 6-figure cap gain this year. It also got rid of most of the individual stocks and those funds went into bonds, preferreds and cash. A year or so ago, we were about 15% cash, 60% stock etfs and 25% bond and muni etfs, and preferreds, Today, we’re about 30% cash, 30% stock etfs, 40% bond and muni etfs, and preferreds.
Kc said that isn’t true. Only people making over 400k will see a tax increase
Ironically I saw my taxes go up after the Trump tax cut. It doesn’t play well to people with multiple homes
Ours stayed almost exactly the same.
But since less was taken out we ended up paying slightly instead of getting a small refund.
My wife was pissed at Trump.
I let her vent and didn’t say anything, I would rather be happy than right.
Salt. It’s a killer.
It doesn’t play well with singles who have no dependents at home anymore but were itemizing their deductions. The increase in the standard deduction did nothing for me as my itemized deductions were a bit more, but the loss of the personal exemption made my taxable income higher.
Maybe if he’s lucky she will be in the Miss Universe pagaent and Donald will let him come back to the dressing rooms with him…he owns the pageant you know. Try as you all might, you can’t out perv the Donald
Taxable income is irrelevant. What happened to your tax liability?
I am married, 2 kids, both adults are w2 wage earners, taking standard deduction. My taxable income went up $4,500 due to loss of personal exemption, but my taxable liability before child tax credit went down $4,141 due to the change in tax tables. In addition, to this my child tax credit went up $4,000 because I was previously phased out. My net tax liability went down $8,141 in 2019, even though my taxable income went up. That is $678 per month in lower federal income taxes. That goes a long way in my household. My preliminary estimates for 2020 is closer to $9,000 due to higher income that my wife is experiencing during the pandemic.
So, what was your net tax liability? Did you pay more or pay less?
Trump sold the Miss Universe organization about 5 years ago.
I paid pretty much the same
You obviously paid less. If you paid $1 more, you would scream as far and loud as possible that Trump raised your taxes.
