131–140 of 292 posts
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Wait, wouldn't you get taxed capital gains on a standard savings account? I'm genuinely curious even though right now saving accounts are not saving anything at all.
Tax on interest is at a different rate than capital gains tax.
Ah, so this bill will tax gains from productive activities like investing in and building companies, while exempting gains from rent seeking activities like real estate. Why am I not surprised?
You used to be able to vote only if you owned land. You now can invest at (effective) discount. We've always favored land ownership.
For those that support this, I have a question: Combined with the federal tax changes, this may increase LTCG rates for Washington residents to more than 60%. I can see folks wanting this for people that regularly make more than a million a year, but what about the situation more common amongst this community where you take below-market pay in exchange for a potential lump payout in one year. For example, say a start…
I think the new federal long term capital gain tax is a new tax bracket starting at 1 million, so the tax rate of the $1.2m will be broken down as follows: * first 200k: 15% * 200k-250k: 15% + 3.8% (ACA Medicare Tax) * 250k-441k: 15% + 3.8% + 7% (New state Tax) * 441k-1m: 20% + 3.8% + 7% (Federal capital gain tax increase to 20%) * 1m-1.2m: 39.6% + 3.8% + 7% (New capital gain tax increase to 39.6%) The tax rate would…
The Biden tax proposal also is adding a 12.4% social security tax for all income over $400k, and it's not split by employer and employee like the first ~$150k is now.
> The average tax rate is about 30%.
What's the average rate if it were realized equally over the 6 years it was earned? Do you feel it's fair this example person pays quite a bit more in taxes versus a similar employee who chose to realize a similar income at a bigco like Facebook?
Why is real estate always exempt from this stuff? Is there a good reason or is the special interest just large?
I have the same question. For middle class we should exempt a certain amount of money from any investment and treat all capital gains the same. The real estate exemption just creates huge inflation in real estate prices.
Why is real estate always exempt from this stuff? Is there a good reason or is the special interest just large?
Non-pessimistic answer: it’s largely the only place the middle class parks its wealth. Besides that it would be stuff like 401k and Roth IRA which would also be exempt already. Pessimistic answer: it’s for developers and landlords
First, the ultra-rich won't pay it. They'll take out loans against their stock instead of selling it.
Second: The 14th amendment to the state constitution[1] says:
> All taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax and shall be levied and collected for public purposes only. The word "property" as used herein shall mean and include everything, whether tangible or intangible, subject to ownership.
This bans any sort of graduated tax. The state supreme court has upheld this in the past.[2] If the legislature wants to make a graduated tax on capital gains, they'll have to amend the constitution.
Third: This tax is counterproductive. If you tax something, you get less of it. Tax cigarettes and people smoke less. Tax alcohol and people drink less. Tax gasoline and people burn less gas. Tax gambling and people gamble less. And if you tax capital gains, then people invest less. If you're going to tax something, tax bad or neutral things, not good things. This tax won't ruin the state's economy, but it certainly won't help economic growth.
1. https://leg.wa.gov/CodeReviser/RCWArchive/Documents/2019/WA%... (Amendment 14 is on page 59)
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For multiple periods spanning over two decades in my life, I greatly appreciated the opportunity to live indoors without having to first purchase a house or apartment where I wanted to live.
That is possible without landlords. Gov't provided housing, for instance.
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It has changed a lot with antifa having free reign for the last year. Lots of businesses boarded up and leaving. Even the Apple store was just set on fire again .
Somehow, I imagine you aren't in Portland or haven't spent a lot of time downtown. You are regurgitating right talking points.
Why is real estate always exempt from this stuff? Is there a good reason or is the special interest just large?
There's a fairness argument that can be made (but probably should only apply to primary residences only) - you buy a house for $100k in Seattle 10 years ago - now you want to move to another neighborhood into an identical house, but both are now worth upwards of $500k - you'd have to come up with the tax difference on the "profit" even though all you're doing is moving between nearly identical properties. Also stock…