Wait you mean taxing the rich actually works?
So is this total sales for the year exceeding $250k or a single transaction. My guess is the total for the year but the article doesn’t specify.
It is an annual tax if you create capital gains every year.
The measure passed in 2021 imposed a 7% tax on the sale of stocks, bonds and other high-end assets in excess of $250,000 for both individuals and couples.
The tax took effect Jan. 1, 2022. First payments are due on or before April 18.
and
Retirement accounts, real estate, farms and forestry were all exempt from the tax. Business owners were also exempt from the tax if they are regularly involved in running the business for five of the previous 10 years before they sell, own it for at least five years, and gross $10 million or less a year before the sale.
and
Under the new law, taxpayers could deduct up to $100,000 a year from their capital gains if they made more than $250,000 in charitable donations in the same tax year, something Huber cited in his ruling, noting that like “an income tax and unlike an excise tax, the new tax statute includes a deduction for certain charitable donations the taxpayer has made during the tax year.”
is all from an article linked from the article.
Capital gains should simply count as income for tax purposes.
I would be fine if there was a mandatory 5 year holding period before you could get a light tax break. It is smart to incentivize investment activities.
There is. Capital gains taxes are broken into two categories - short term and long term. But stocks transition to long term after only six months and the tax brackets are better than that for normal income.
6 months is nothing though, just two quarters. It still incentivizes CEOs to make short term decisions. 5 years is a decent time frame that I think would make CEOs rethink the quarterly mentality.
Good. Maybe now they can bring down the regressive sales tax. Or maybe even bring down the massive liquor tax so I’m not paying $20 for an $8 handle of vodka
