No, A Capital Gains Tax Hike Under Biden Won’t Be The End Of The World, Goldman Says
A couple of weeks back, JPMorgan's Nikolaos Panigirtzoglou weighed in on the possible ramifications for US equities of a hypothetical capital gains tax hike under a Joe Biden administration.
Long story short, Panigirtzoglou concluded that tax-related selling during the fourth quarter of 2021 (ahead of a presumed January 2022 effective date) could pressure stocks to the tune of around 5%.
Of course, any such selling wouldn't happen in a vacuum. There's no telling what the macro backdrop might l
Love this: “The bank goes on to recap Biden’s plan, which would entail taxing long-term capital gains and qualified dividends at 43.3% (up from 23.8%) for filers with over $1 million in annual income.” hahahaha Ok. Took me 20 seconds but I picked myself up off the floor. I’d love to have the problem of $1M annual income and worry about the tax rate on my capital gains going up 15% whole percentage points. These people are so encumbered. I feel bad for them.
This is laughable. No one cares about people making this much money each year. I just drove by a park in the city where I live. There’s a tent encampment. The people living in the encampment care less about whiner babies making a $1M in annual income.
In fact, why don’t we find an eloquent speaker and groom this individual, one who can cross geographical and ethnic lines, one who connects and who is charismatic. Let’s organize the disenfranchised around the issue of who the system doesn’t benefit them. Give the $1M annual income households something to worry about rather than the capital gains rate.
I am okay with such taxes – looking at them from the viewpoint of MMT – they are a way to redistribute wealth when things are out of balance in a society now rife with inequality. We had our run: Investors benefited greatly from asset inflation propelled by QE, and low rates, while others lost ground. As the clamor in the market about fiscal stimulus attests, investors will benefit from the coming installments of fiscal stimulus which will also help non investors. It’s not wise nor fair to be too greedy
Raising taxes is crazy. Envy is a terrible thing , gentlemen.
Raising taxes has nothing to do with “envy.” Just ask Warren Buffett, who said this last year: “The wealthy are definitely undertaxed relative to the general population.”
You reckon Warren is jealous?