Republicans' latest proposed tax cut for the rich could permanently hobble future presidents

[Zorro]

At this point it’s almost a pathology. Whatever the crisis, whatever the state of the economy, Republicans crave another tax cut for the rich.

The latest proposal is for a temporary “holiday” on capital gains taxes, as White House adviser Kevin Hassett pitched Sunday on CNN and President Trump had earlier proposed via tweet. A one-time, temporary capital gains tax holiday would do little to stimulate the economy, even according to the GOP’s usual line that tax cuts goose growth. The move could, on the other hand, permanently hobble the ability of future presidents to fund the government.

A “capital gain” refers to how much the value of an asset (such as a stock) has increased over time. Taxes on capital gains are triggered only when the asset is sold. So if you bought a few shares of Apple stock when it IPO’d in 1980, your shares would be worth a fortune today — but you don’t owe Uncle Sam a penny until you cash out.

And perhaps not even then.

Only a small sliver — about a quarter — of U.S. stock is taxable, because most equities are held in tax-exempt retirement accounts or by tax-exempt nonprofits or foreigners, according to the Tax Policy Center's Steven M. Rosenthal and Lydia Austin. Sales of assets that are taxable are taxed at preferential rates (that is, lower than what you pay on your wage or salary income) if the investments are held for more than a year.

https://www.washingtonpost.com/opinions/whatever-the-crisis-republicans-want-another-tax-cut-for-the-rich/2020/05/25/96d0c6ac-9eb8-11ea-81bb-c2f70f01034b_story.html

[CrispyQ]

1. Investment income

should never be taxed lower than income earned from the exchange of your life's time for a paycheck. That's just mean.

[kimbutgar]

2. Fortunately it will not pass the House

Nancy not will let it happen.

[SWBTATTReg]

3. Another so called promise that will greatly benefit the economy (goosing it up)...just like the ...

idiotic 2017 tax cut and jobs bill, that promised that $50 billion or more will come back into the US then when the 2017 tax cut and jobs bill was passed (companies were supposedly sitting on earnings outside the US, not bringing it back into the US to escape taxes), when the 2017 tax cut bill passed, nothing of the sort happened, no great amount of funds came roaring back into the US, etc. A joke in effect.

This will be the same thing. They are only doing it for one reason and one reason only, their donors. Period. Not responsible what-so-ever, and they won't cover the missing revenues elsewhere either, or they will, by cutting social security or some other critically needed program. A total wack job.