#capital gain tax

[sohaibsmart]

Funds 2024: Will make up for income forgone, says FM Nirmala Sitharaman | Funds 2024 Information

5 min learn Final Up to date : Jul 24 2024 | 12:43 AM IST Union Finance Minister Nirmala Sitharaman, alongside together with her group of bureaucrats, delved into the fantastic print of the 2024-25 Funds paperwork in a press convention, detailing the federal government’s street map on bringing down the debt-to-GDP ratio and daring tax measures. Ruchika Chitravanshi, Shrimi Choudhary, and Harsh…

[workingmumkitty]

Do I have to declare capital gains and dividends if they are tax-free? | Daily Mail Online

I held some shares in investment trusts outside of an Isa and sold them all in March, so that I could take my profits before the capital gains tax allowance was cut. — Read on www.dailymail.co.uk/money/investing/article-13643229/Do-declare-capital-gains-dividends-tax-free.html Visit KS Virtual Finance if you need help with self-assessment

[mostlysignssomeportents]

Of course we can tax billionaires

On OCTOBER 23 at 7PM, I'll be in DECATUR, presenting my novel THE BEZZLE at EAGLE EYE BOOKS.

Billionaires are pretty confident that they can't be taxed – not just that they shouldn't be taxed, but rather, that it is technically impossible to tax the ultra-rich. They're not shy about explaining why, either – and neither is their army of lickspittles.

If it's impossible to tax billionaires, then anyone who demands that we tax billionaires is being childish. If taxing billionaires is impossible, then being mad that we're not taxing billionaires is like being mad at gravity.

Boy is this old trick getting old. It was already pretty thin when Margaret Thatcher rolled it out, insisting that "there is no alternative" to her program of letting the rich get richer and the poor go hungry. Dressing up a demand ("stop trying to think of alternatives") as a scientific truth ("there is no alternative") sets up a world where your opponents are Doing Ideology, while you're doing science.

Billionaires basically don't pay tax – that's a big part of how they got to be billionaires:

https://www.propublica.org/series/the-secret-irs-files

By cheating on their taxes, they get to keep – and invest – more money than less-rich people (who get to keep more money than regular people and poor people, obvs). They get so much money that they can "invest" it in corrupting the political process, for example, by flushing vast sums of dark money into elections to unseat politicians who care about finance crime and replace them with crytpo-friendly lawmakers who'll turn a blind eye to billionaires' scams:

https://www.newyorker.com/magazine/2024/10/14/silicon-valley-the-new-lobbying-monster

Once someone gets rich enough, they acquire impunity. They become too big to fail. They become too big to jail. They become too big to care. They buy presidents. They become president.

A decade ago, Thomas Piketty published his landmark Capital in the 21st Century, tracing three centuries of global capital flows and showing how extreme inequality creates political instability, leading to bloody revolutions and world wars that level the playing field by destroying most of the world's capital in an orgy of violence, with massive collateral damage:

https://memex.craphound.com/2014/06/24/thomas-pikettys-capital-in-the-21st-century/

Piketty argued that unless we taxed the rich, we would attain the same political instability that provoked the World Wars, but in a nuclear-tipped world that was poised on the brink of ecological collapse. He even laid out a program for this taxation, one that took accord of all the things rich people would try to hide their assets.

Today, the destruction that Piketty prophesied is on our doorstep, and all over the world, political will is gathering to do something about our billionaire problem. The debate rages from France to dozen-plus US states that are planning wealth taxes on the ultra-rich.

Wherever that debate takes hold, billionaires and their proxies pop up to tell us that we're Doing Ideology, that there is no alternative, and that it is literally impossible to tax the ultra-rich.

In a new blog post, Piketty deftly demolishes this argument, showing how thin the arguments for the impossibility of a billionaire tax really is:

https://www.lemonde.fr/blog/piketty/2024/10/15/how-to-tax-billionaires/

First, there's the argument that the ultra-rich are actually quite poor. Elon Musk and Mark Zuckerberg don't have a lot of money, they have a lot of stock, which they can't sell. Why can't they sell their stock? You'll hear a lot of complicated arguments about illiquidity and the effect on the share-price of a large sell-off, but they all boil down to this: if we make billionaires sell a bunch of their stock, they will be poorer.

No duh.

Piketty has an answer to the liquidity crisis of our poormouthing billionaires:

If finding a buyer is challenging, the government could accept these shares as payment for taxes. If necessary, it could then sell these shares through various methods, such as offering employees to purchase them, which would increase their stake in the company.

Though Piketty doesn't say so, billionaires are not actually poor. They have fucktons of cash, which they acquire through something called "buy, borrow, die," which allows them to create intergenerational dynastic wealth for their failsons:

https://finance.yahoo.com/news/buy-borrow-die-rich-avoid-140004536.html

Billionaires know they're not poor. They even admit it, when they say, "Okay, but the other reason it's impossible to tax us is that we're richer and therefore more powerful than the governments that want to try it."

Piketty points out the shell-game at the core of this argument: the free movement of money that allows for tax-dodging was created by governments. They made these laws, so they can change them. Governments that can't exercise their sovereign power to tax the wealthy end up taxing the poor, eroding their legitimacy and hence their power. Taxing the rich – a wildly popular move – will make governments more powerful, not less.

Big countries like the US (and federations like the EU) have a lot of power. The US ended Swiss banking secrecy and manages to tax Americans living abroad. There's no reason that France couldn't pass a wealth-tax that applies to people based on their historical residency: a 51 year old French billionaire who decamps to Switzerland to duck a wealth tax after 50 years in France could be held liable for 50/51 of the wealth tax.

The final argument Piketty takes up is the old saw that taxing the rich is illegal, or, if it were made legal, would be unconstitutional. As Piketty says, rich people have taken this position every single time they faced meaningful tax enforcement, and they have repeatedly lost this fight. France has repeatedly levied wealth taxes, as long ago as 1789 and as recently as 1945.

Taxing the ultra-rich isn't like the secret of embalming Pharaohs – it's not a lost art from a fallen civilization. The US top rate of tax in 1944 was 97%. The postwar top rate from 1945-63 was 94%, and it was 70% from 1965-80. These was the period of the largest expansion of the US economy in the nation's history. These are the "good old days" Republicans say they want to return to.

The super-rich keep getting richer. In France, the 500 richest families were worth a combined €200b in 2010. Today, it's €1.2 trillion. No wonder a global wealth tax is at the top of the agenda for next month's G20 Summit in Rio.

Here in the US – where money can easily move across state lines and where multiple states are racing each other to the bottom to be the best onshore-offshore tax- and financial secrecy-haven – state-level millionaire taxes are kicking ass.

Massachusetts's 2024 millionaire tax has raised more than $1.8b, exceeding all expectations (it was originally benchmarked at $1b), by taxing annual income in excess of $1m at an additional 4%:

https://www.boston.com/news/business/2024/05/21/heres-how-much-the-new-massachusetts-millionaires-tax-has-raised-this-year/

This is exactly the kind of tax that billionaires say is impossible. It's so easy to turn ordinary income in sheltered income – realizing it as a capital gain, say – so raising taxes on income will do nothing. Who are you gonna believe, billionaires or the 1.8 billion dead presidents lying around the Massachusetts Department of Revenue?

But say you are worried that taxing ordinary income is a nonstarter because of preferential capital gains treatment. No worry, Washington State has you covered. Its 7% surcharge on capital gains in excess of $250,000 also exceeded all expectations, bringing in $600m more than expected in its first year – a year when the stock market fell by 25%:

https://pluralistic.net/2023/06/03/when-the-tide-goes-out/#passive-income

Okay, but what if all those billionaires flee your state? Good riddance, and don't let the door hit you on the way out. All we need is an exit tax, like the one in California, which levies a one-time 0.4% tax on net worth over $30m for any individual who leaves the state.

Billionaires are why we can't have nice things – a sensible climate policy, workers' rights, a functional Supreme Court and legislatures that answer to the people, rather than deep-pocketed donors.

The source of billionaires' power isn't mysterious: it's their money. Take away the money, take away the power. With more than a dozen states considering wealth taxes, we're finally in a race to the top, to see which state can attack the corrosive power of extreme wealth most aggressively.

Tor Books as just published two new, free LITTLE BROTHER stories: VIGILANT, about creepy surveillance in distance education; and SPILL, about oil pipelines and indigenous landback.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/10/15/piketty-pilled/#tax-justice

[skygenders]

There is usually one or two progressive initiatives on Washington’s ballot but this year is just GARBAGE. Like no I do not want to defund our schools thank you

[animentality]

[steelbluehome]

For tumblr people in the USA, and anyone they know who is worried about the capital gains tax.

Kamala Harris wants to increase the capital gains tax on households which have an income of $100,000,000 (one hundred million dollars) a year. Do you live in a household that makes $100,000,000 per year?

If not, then Kamala Harris' capital gains tax increase does not affect you. Not in any possible way. None. Nada. Nope.

If so, then, Oh no! Time for the food bank, I guess! I'll see you there at 9am on Thursdays! I hope you like white bread and canned spinach! I guess the best answer is to vote for a fascist dictator, because I am sure he will never want to take your money after he is in power!

Sources

Media Matters

Yahoo! Finance

Los Angeles Times

Market Watch

Axios

Common Dreams

[dispatchesfromtheclasswar]

[dontmean2bepoliticalbut]

[phoenixyfriend]

Jeff Bezos just moved to Florida to avoid a capital gains tax that would have given 288 million in revenue to the state of Washington.

He claims it was to be closer to his family, but it sure is interesting that he just now sold 4 billion usd worth of Amazon shares.

(Article from when it was at 2b.)

Apparently the move to Florida is going to save him 610 million on over 8b in sales.

A national capital gains tax exists, but...

[trutown-the-bard]

An "unrealized capital gains tax" can and will be used to seize IP from creators by corporations.

Imagine if Apple showed up on Brandon Sanderson’s doorstep and bid $2M for Mistborn. I'm not sure he has $500k sitting around for taxes. And thus he will be forced to sell even if he doesn’t want to.

[jangillman]

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I cannot believe they want to tax you 25% for gains you've not had yet and 40% on CG... outrageous! I hope all the liberal left is paying attention this time, otherwise they'd better get used to having nothing and liking it!

[workingmumkitty]

300,000 file tax returns in the first week of the tax year - GOV.UK

300,000 early birds file their Self Assessment tax return in the first week of the new tax year. — Read on www.gov.uk/government/news/300000-file-tax-returns-in-the-first-week-of-the-tax-year Have you filed your self-assessment yet?

[mostlysignssomeportents]

Washington State's capital gains tax proves we can have nice things

Today (June 3) at 1:30PM, I’m in Edinburgh for the Cymera Festival on a panel with Nina Allen and Ian McDonald.

Monday (June 5) at 7:15PM, I’m in London at the British Library with my novel Red Team Blues, hosted by Baroness Martha Lane Fox.

Washington State enacted a 7% capital gains tax levied on annual profits in excess of $250,000, and made a fortune, $600m more than projected in the first year, despite a 25% drop in the stock market and blistering interest rate hikes:

https://www.theurbanist.org/2023/06/01/lessons-from-washington-states-new-capital-gains-tax/

Capital gains taxes are levied on “passive income” — money you get for owning stuff. The capital gains rate is much lower than the income tax rate — the rate you pay for doing stuff. This is naked class warfare: it punishes the people who make things and do things, and rewards the people who own the means of production.

The thing is, a factory or a store can still operate if the owner goes missing — but without workers, it shuts down immediately. Everything you depend on — the clothes on your back, the food in your fridge, the car you drive and the coffee you drink — exists because someone did something to produce it. Those producers are punished by our tax system, while the people who derive a “passive income” from their labor are given preferential treatment.

The Washington State tax is levied exclusively on annual gains in excess of a quarter million dollars — meaning this tax affects an infinitesimal minority of Washingtonians, who are vastly better off than the people whose work they profit from. Most working Americans own little or no stock, and the vast majority of those who do own that stock in a retirement fund that is sheltered from these taxes.

(Sidebar here to say that market-based pensions are a scam, a way to force workers to gamble in a rigged casino for the chance to enjoy a dignified retirement; the defined benefits pension, combined with adequate Social Security, is the only way to ensure secure retirement for all of us)

https://pluralistic.net/2020/07/25/derechos-humanos/#are-there-no-poorhouses

Washington’s tax was anticipated to bring in $248m. Instead, it’s projected to bring in $849m in the first year. Those funds will go to public school operations and construction and infrastructure spending:

https://www.seattletimes.com/seattle-news/politics/was-new-capital-gains-tax-brings-in-849-million-so-far-much-more-than-expected/

That is to say, the money will go to ensuring that Washingtonians are educated and will have the amenities they need to turn that education into productive work.

Washington State is noteworthy for not having any state personal or corporate income tax, making it a haven for low-tax brain-worm victims who would rather have a dead gopher running their states than pay an extra nickel in taxes. But places that don’t have taxes can’t fund services, which leads to grotesque, rapid deterioration.

Washington State plutes moved because they relished living in well-kept, cosmopolitan places with efficient transportation, an educated workforce, good restaurants and culture — none of which they would have to pay for. They forgot Karl Marx’s famous saying: “There’s no such thing as a free lunch.”

The idea that Washington could make up for the shortfalls that come from taxing its wealthiest residents by levying regressive sales taxes and other measures is mathematically illiterate wishful thinking. When the one percent owns nearly everything, you can tax the shit out of the other 99% and still not make up the shortfall.

Meanwhile: homelessness, crumbling roads, and crisis after crisis. Political deterioration. Cute shopping neighborhoods turn into dollar store hellscapes because no one can afford to shop for nice things because all their income is going to plug the gaps in health, education, transport and other services that the low-tax state can’t afford.

Washington State’s soak-the-rich tax is ironic, given the propensity of California’s plutes to threaten to leave for Washington if California finally passes its own extreme wealth tax.

There’s a reason all these wealthy people want to live in California, Washington, New York and other states where there’s broad public support for taxing the American aristocracy: states with rock-bottom taxes are failed states. All but two of America’s “red states” are dependent on transfers from the federal government to stay in operation. The two exceptions are Texas, whose “free market” grid is one nanometer away from total collapse, and Florida, which is about to slip beneath the rising seas it denies.

Rich people claim they’d be happy to live in low-tax states, and even tout the benefits of a desperate workforce that will turn up to serve drinks at their country clubs even as a pandemic kills them at record rates. But when the chips are down, they don’t want to depend on a private generator to keep the lights on. They don’t want to have to repeatedly replace their luxury cars’ suspension after it’s wrecked by gaping potholes. They don’t want to have to charter a jet to fly their kids out of state to get an abortion.

This is true globally, too. As Thomas Piketty pointed out in Capital in the 21st Century, if the EU and OECD created a wealth tax, the rich could withdraw to Dubai, the Caymans and Rwanda, but they’d eventually get sick of shopping for the same luxury goods in the same malls guarded by the same mercenaries and want to go somewhere, you know, fun:

https://memex.craphound.com/2014/06/24/thomas-pikettys-capital-in-the-21st-century/

We’re told that Americans would never stand for taxing the ultra-rich because they see themselves as “temporarily embarrassed millionaires.” It’s just not true: soak-the-rich policies are wildly popular:

https://balanceourtaxcode.com/wp-content/uploads/2023/02/WA-State-Wealth-Tax-Poll-Results-3.pdf

The Washington tax windfall is fascinating in part because it reveals just how rich the ultra-rich actually are. Warren Buffett says that “when the tide goes out, you learn who’s been swimming naked.” But Washington’s new tax is a tide that reveals who’s been swimming with a gold bar stuck up their ass.

It’s not surprising, then, that Washingtonians are so happy to tax their one percenters. After all, this is the state that gave us modern robber barons like Bill Gates and Jeff Bezos. And then there’s clowns like Steve Ballmer, star of Propublica’s IRS Files, the man whose creative accounting let him claim $700m in paper losses on his basketball team, allowing him to pay a mere 12% tax on $656m in income, while the workers who made his fortune on the court paid 30–40% on their earnings.

https://pluralistic.net/2021/07/08/tuyul-apps/#economic-substance-doctrine Ballmer’s also a master of “tax loss harvesting,” who has created paper losses of over $100m, letting him evade $138m in federal taxes:

https://pluralistic.net/2023/04/24/tax-loss-harvesting/#mego

These guys aren’t rich because they work harder than the rest of us. They’re rich because they profit from our work — and then, to add insult to injury, pay little or no taxes on those profits.

Washington’s lowest income earners pay six times the rate of tax as the state’s richest people. When the wealthy squeal that these taxes are class warfare, they’re right — it is class war, and they started it.

Catch me on tour with Red Team Blues in Edinburgh, London, and Berlin!

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/06/03/when-the-tide-goes-out/#passive-income

[Image ID: The Washington State flag; the circular device featuring George Washington has been altered so that it is now the head of a naked man clothed in a barrel with two wide leather shoulder straps.]

[wyrmfedgrave]

Proposed Harris tax only on $100 million dollars & above of unrealized capital gains - otherwise, it doesn't affect you.

End.

[mangoofthesea]

How many things do you think need to be set on fire to disrupt capitalism enough to create a livable society? Asking for a friend