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Originally Posted by Robbie
I suggest to you that it would. If I saw that I was going to lose a few million dollars from capital gains being raised...I would immediately (as would EVERY person with investments) be advised to move it to another country or some other method of NOT losing that money. It's a great way to further lose investment in the U.S. and have people bitching about "rich" people having their money in other countries.
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The investments made on foreign markets would result in taxable income to you here in the states at your standard income tax rate. There would not be a tax benefit to investing in other markets overseas unless you were no longer an American citizen.
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Also...guess what's going to happen to our little stock portfolios? They are going to be worth less to us because we are going to have to pay out more in taxes on them.
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They will be worth exactly the same as they are now... the value of your investments would not be changed a penny. The amount of taxes you pay on the PROFIT of those investments is the only thing that would change. You do not pay taxes on the amount you invest, you pay taxes only on the profit.
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And grandma's retirement plan? It's gonna be fucked as well.
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Actually that is not true at all. If capital gains was the same as income tax rates, little old grandma with an investment income of 25K per year would be paying LESS than the 15% she gets hit with now most likely. However, someone who makes 20M in profit would pay the same rate as someone who makes 20M in profit from owning a factory or any other business.
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None of y'all are thinking about the ramifications of this.
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Yes, some of us are...
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I can personally tell you that my accountant's (3rd one I've had and they are all the same) main job is to save you money on your taxes. And if my accountant can find where to put my money to get the optimal growth and least tax expense...then I know damn well that really "rich" guys have even better accountants. And if investment in the stock market loses it's appeal when taxes are raised. They WILL move that money to something else. It's common sense. And it's how things work.
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Anything they would move it to has the same income tax rate they would pay with a corrected capital gains tax. There is no tax benefit to 'not investing', the only thing changing is the loophole that currently allows investors to pay less than people who earn the same amount of money by actually doing work or owning businesses.
Earning money from money does not need to be taxed less than earning money from work.
