If you’re taking profit at 12% trading stocks might not be for you. Currently, if long term capital gains are your entire income, married filing jointly is zero tax up to like 130K annually. Trading is the dumbest place to make the taxation argument. You get high taxes on short term capital gains because it’s being disincentivized, long term it’s one of the lowest tax brackets. If anything, better argument is why is my labor income taxed at a higher rate than someone’s trading income?
Trading is the dumbest place to make the taxation argument
No, actually, it's the perfect place. Property taxes are equivalent to capital gains taxes, and they assume market value only goes up. So your property could be going down in value as nearby properties go up, and that means your tax rate does not reflect the value of your property. You are taxed based on what your neighbors are willing to pay, not what you paid for the property.
The same thing happens with stocks. The value of the stock is determined by what other people pay on average. If they tax the increase, like they do with land, they are assuming the value always goes up so it's a state enforced monopoly of sorts. You must spend money appreciating your asset because if you don't you'd lose that money to taxes anyway.
Property taxes =\= Capital gains taxes. You’re making a false equivalence.
Claims presented without supporting evidence or reasoned argumentation are summarily dismissed, with the default judgment rendered against the position being advocated.
It’s common knowledge that property taxes and capital gains are altogether different. You do pay capital gains on home sales, which again, is entirely different than property taxes. You don’t just get to change naming conventions to suit your argument. You’re just making up false premises based on false equivalencies. Unrealized gains aren’t taxed in capital markets so you bringing that up has no bearing on the conversation. Claims presented with false premises based on false equivalences are summarily dismissed, with the default judgement rendered against the position being advocated.
Incorrect. Capital gains are only paid when the value of the stock goes up. Capital gains are always paid on property, even if the value goes down. A capital gains tax taxes the market value under the assumption that the value always goes up. Sales tax does not capture capital gains if you are selling at a loss.
So putting it as simply as possible, an unrealized gains tax is "we will tax you on the market value of the commodity, even if you sold it at a loss."
For property it's, "We will tax you on the market rate of similar properties, even if the value of your property goes down -> I have to improve the property because I am taxed like I am improving it regardless of if I am improving it." It's a socialist market where values are not allowed to come down.
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u/Prescientpedestrian 2h ago
If you’re taking profit at 12% trading stocks might not be for you. Currently, if long term capital gains are your entire income, married filing jointly is zero tax up to like 130K annually. Trading is the dumbest place to make the taxation argument. You get high taxes on short term capital gains because it’s being disincentivized, long term it’s one of the lowest tax brackets. If anything, better argument is why is my labor income taxed at a higher rate than someone’s trading income?