Capital gains taxes, explained.
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The richest in America don’t make money like most Americans. Most people pay income taxes from a regular job. But many in the top 1% make money off their investments, like stocks, and pay capital gains taxes. While normal income has a maximum tax rate of 37%, long-term capital gains tops out at just 20%. Changing that rate, and some loopholes that benefit the wealthiest, is seen as one way to tax the rich.
Read more about how the richest avoid paying income taxes from Vox:
https://www.vox.com/22432338/joe-biden-tax-plan
And an investigation from ProPublica:
https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax
For more information about Elon Musk’s loans:
https://www.wsj.com/articles/elon-musk-techs-cash-poor-billionaire-11588967043
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If you want to learn more about the US tax system, check out ProPublica's investigation into the wealth and taxes of some of the richest people in the country. They obtained IRS records of billionaires like Jeff Bezos and Elon Musk that specifically show how the rich get away with paying little to no taxes.
https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax
i feel like that rich guy wouldnt be advocating for taxing the rich more if he believed he was going to become poor because of it
This does a pretty good job of explaining that stock is a capital gain, but you know what else is a capital gain? Houses, cars, collectibles and art. Yeah the stuff you already own and already have been taxed on the sale price. What’s worse is tax on unrealized (basically not yet sold) capital gains which they explain in the video would be such a good thing if billionaires were taxed on unrealized gains particularly in their stocks.
To put this in perspective of why it’s a bad idea to tax unrealized gains Your house going up in value is a type of unrealized capital gain. As an example of realized and unrealized gains. Imagine you have a house worth $300k you own it for many years and sell it for $700k. Currently, as the laws stand in the us you are taxed on the capital gain or difference between your initial buy $300k and the sale price $700k, so you’re taxed on the $400k capital gain. Now imagine a world where you are not only taxed when your capital gain is realized (sold), but also when it’s unrealized (still in your possession). Say you bought a house for $500k and over the years the house price rises to $1M you would at any given point most likely yearly (and depending on how the law worked) have to come up with the money to pay for your gain in value when you probably don’t even have that kind of money. Now say for example the housing market crashes and you already paid your unrealized gains for last year do you think the government would be able to pay you and for that matter everyone with some form of rebate, because you lost on your unrealized capital gain. My answer is most likely they would not.
I know the law wouldn’t touch these unrealized gains yet and only those of billionaires, but they could easily come for lower classes next. 😬 The history of tax in the US has shown that they continue to take more and more from everyone.
Wealth tax is not a workable idea esp with volatilities of nft and crypto nowadays.
They get the most refunds.
😎😎😎
Both political parties have utterly filled the American people and are corrupt. We should move to a fair tax. Stop taxing income completely. A federal sales tax would be fair. Rich people buy more and they would pay higher taxes, poor people buy less, so they would pay less taxes.
This is why I don't contribute to society. I don't donate, I don't volunteer, I do the least amount I legally have to.
The funniest thing is that it is based on the fact that taxes must be raised, and the reasoning is made on the basis of that. The thing would also be to do the opposite, don't you think?
Lets say government get more money by taxing these tycoons. What next, invest that money in military or in some place where few well to do people profit. I say reduce tax for all.
People need to understand why you can't just tax shares that have not been sold. Share prices of a stock are non Tangable. The price doesn't exists until the share is sold. A share worth is a guess of how much it is worth. You can't tax something based on a guess. This causes two problems.
The share could be worth $40 and say the person pays 5% tax on it ever year after 20 years the owner loses more money than they had worth. That system would destroy up the stock exchange system as owning shares would mean basically going broke and no one would buy shares either, therefore business would relocate to another country destroying millions of jobs.
Also this will make tax worse for everyone. Since shares are capital, if you start taxing non sold shares, than you have to start taxing non sold capital overall to, That means if you own a car or house, you would have to pay tax on it every year even if you aren't a billionaire.
and discourage business from opening ipo.
Taxing unsold capital will cause significantlymore problem for everyone
Work for China and lobby for everyone that told America they wont fuckem over well..
Hmm let’s tax the poor person more than the billionaire…
The tax difference is about risk. A paycheck is guaranteed if you work for a company. However, investments aren't guaranteed to be profitable. Ppl who want to tax rich ppl don't understand that more taxes will stifle economic growth and innovation. This is just a simple case of envious ppl wanting to punish successful ppl.
Blatantly omits time frames in capital gains vs salary,. Risk, and company tax also omitted. We have massively wage mobility. I wanted to watch this feeling challenged.
If he really cares about billionaires paying their fairly, he would pay his income tax.
Everyone has the ability to use these write offs. Just be smart.
If you taxed stocks capitalism would cease to exist.
I wish I could just walk everywhere I need to go otherwise I wish I could just stay home
of course get the richer richer 5:40
when you have alot of money its easier to make even more because %
i mean it makes sense that only when you selling you pay tax…
In the UK you would pay inheritance tax on assets passed to the next generation on death
Our system is truly despicable; the profit of the few at the expense of the many.
Don’t mind me, just taking notes
If the government was concerned about racing the lower class they could change the tax code.
How do you make banks loan money against risky valuables like stock papers?! Those are not secure at all? This would never fly for ordinary people…
Being a rich man is one big achieve_ment in life, almost every thing is possible in a rich man's hand 👌
Funny every time I see something like this 😂 Do people really not know “the rich” actually pay more taxes in a few months than the average person does in a lifetime? It’s true. So what’s fair? Hmmm?
I'll suggest that because of the crash, choosing the appropriate stock won't be too simple. Jim Cramer mentioned that despite the crash, there are still tremendous chances, and I saw someone mention making $250k from approximately $110k since the crash. How do I generate returns like these? Nate
Move to Dubai
Let's tax everything!
Good for them
Why is there no mention of WHY capital gains taxes are taxed the way they are?
So, why the discrepancy? To encourage people to invest?
How can you pay the loan if you dont have income which is subject to stock?
I love how on the one hand Buffet has built this persona of a benevolent billionaire while on the other hand paying off the right people to keep things the way they are
Rich avoid taxes, the poor pay taxes. Ah yes, a very fair system promoting wealth and social inequality. And the tax to be used in wars like the Iraq War. Very, very fair and perfect country the US is right now!
We all know how rich people get rich…they exploit the working class. They keep giving us a smaller slice of the pie and then the government takes their cut, leading us with crumbs. This will not end well. (See French revolution)
amazon abv 60 , tesla abv 76 end march… tesla max returns .. the stock.
Rich dad Poor dad – read that!
Lol stocks are a clown
Bruh 💀 it just appear me an ad about paying taxes after click this video about how rich avoid taxes
Bear in mind that good stocks are resistant to inflation unlike fiat currencies. Fed Reserve cannot print 4 trillion Berkshire Hathaway stocks.
Yeah I’m not gonna pay taxes
Lower tax rate, but Warren Buffet's total amount is higher. Makes sense to me. Think about tax as the fee for using public services. Taxes are for the use of highways, police, national defense, and other infrastructure. How much infrastructure can Buffet use?
They're paying taxes, actually, but they're just smart to make it low paying legally or the tax is paying them instead
You forgot to mention that warren buffet has to pay an inheritance tax he dies. Basis never changes without a taxable event.
If you are a billionaire you dont need income. Wise words Sherlock, wise words.
🗽 Avoiding taxes, and the historical moment's 🍃, "falling olive leaf tiara" ⚖
I just find it ridiculous to tax unrealised capital gain because the stock could go down anytime. Unless the gov is willing to payback the tax money incase of the stock is going down. But it aint happening.
A hypocritical video from 1y ago… any change in legislation?
You better not have this what people do to people when the want them dead I serviced it