Wealthiest Americans May Sell Some Stocks

Wealthiest Americans May Sell Some Stocks

A few minutes after Bloomberg lit up traders' screens with headlines touting a doubling of capital gains taxes for a fraction of filers, I mentioned that analysts long ago ran the numbers on what such a proposal might entail for tax-related selling of equities. I cited JPMorgan and Goldman, whose David Kostin last year observed that "although the wealthiest households sold 1% of their assets prior to the rate hike [in 2013] they bought 4% of starting equity assets in the quarter after the chang
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4 thoughts on “Wealthiest Americans May Sell Some Stocks

  1. What % of the top 1 % stock holdings are stock in a company an individual founded? I believe the way the big tech stocks have gone up, that has to be a significant chunk of the 53%. Paul

  2. Here’s a thought rich one-percenters, take some of that bloated stock you want to get rid of before the gains rates go up and instead give it to some worthy causes for those less fortunate than you. The gains just disappear and you can deduct the whole sale value and actually reduce your taxes. Where I live the local food bank leverages my dollars five times to supply food to the needy. When there are matching donors around my dollars are doubled providing ten meals for every dollar I give. Last year year I gave the food bank stocks I paid 20 cents on the dollar for and they provided over 200,000 meals. I’m not wealthy as H described a couple days ago. Rather, I fall in that technically rich group and I hate any gains taxes so I give those gains to the needy instead of letting the IRS get my dough to waste on some sick military program or a first class ticket for a crooked congressman. Bill Gates, Warren Buffett, Jeff Bezos and their buddies have gotten with the program. Join me in joining them and put that money it’s really needed instead of giving it to the Treasury who can make more anytime they want to anyway.

  3. I think a capital gains tax rate to not-unprecedented levels will be largely a non-event for the markets. Look at market performance before/during prior capital gains rate changes – no pattern. I can see some tilting of the board toward dividend payers and ETFs. Otherwise it seems likely to be a “buy the news” event.

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