Which sounds worse? Boosting capital gains taxes to 36%? Or removing it entirely on home sales to encourage listings/purchases?

[i]Photo above - "That's okay, Toto. We could never have afforded the 36% capital gains tax on Auntie Em's farm anyway."[/i]

These days, everything is “the highest since 1978”. Housing, cars, gasoline, drug use. Democrats want to boost capital gains taxes to 36%, the highest since 1978. The rate today is 24% already. 36% will be double what Europeans pay (see link below)

I get the concept. Someone believes only rich people own stocks, homes, etc. Since both home prices and stock indexes are up, the government should grab a share! Okay, but the missing part of this plan is whether it would balance the budget, or reduce the national debt. Apparently not. Nobody is claiming there will be a pot of gold at the end of the rainbow. Spending will continue rise faster than taxes.

If a homeowner found out taxes were skyrocketing from 24% to 36%, they might leap into action to avoid an additional hit after the law takes effect. Or not, if they can’t afford to buy a new home at inflated prices (retirees on fixed incomes). In any case, once Uncle Sam starts taking 36% of your home proceeds on sales day, you can bet people will be skittish about selling, and buying. They might take the down payment money they saved up for a new home and put it into something with more promise and lower taxes.

The same logic applies to stocks themselves. If the tax rate on your shares of Ford, Tesla, or Microsoft is going to the moon, expect a rush to sell before that unhappy day. Another opportunity for a big crash, as if bombing Tehran wasn’t bad enough. Will millions of ordinary workers with 401K and IRA retirement accounts applaud a market crash? Probably not.

Republicans have a “bizarro world” opposite tax plan. Eliminate ALL taxes on home sales. The seller keeps the entire jackpot. Profits that will presumably be used to buy a different home, pay for assisted living in a senior center, or day trading in Bitcoin. This republican plan isn’t going to reduce the deficit either. But it will probably harvest more votes on election day from homeowners and aspiring buyers.

Just once I’d like to get an email or spam piece telling me about a great idea to cut needless government spending. Instead of tax increases, or tax cuts where the is no source to make up for the lost revenue. If politicians are shouting about taxes-taxes-taxes you can bet this is simply an election strategy and has nothing to do avoiding a government shutdown every 90 days.

I’m just sayin’ . . .


Dems to Propose Highest Capital Gains Tax Rate Since 1978 - Americans for Tax Reform

GOP plan to eliminate state taxes on home sales sparks Democrat backlash | Arizona Capitol Times

https://atr.org/dems-to-propose-highest-capital-gains-rate-since-1978/