this post was submitted on 11 Apr 2024
477 points (96.5% liked)
Memes
45727 readers
778 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Investment income being taxed less than employment income is another form of class warfare.
Why the hell do you pay more in taxes than Elon Musk?
Are you talking about capital gains tax?
First, let's be clear, the reason the rich pay little tax doesn't have much to do with the capital gains tax rate being lower.
Now the reason for the lower rate (at least ostensibly) is that while income is earned at a point in time, capital gains happens over large amounts of time. Therefore often a big part of the gain is inflation. Let's imagine you bought a house for $100k and 20 years later you sell the house for $140k. Over that time inflation has been a steady 2%.
Due to inflation $148k is now worth what $100k was worth 20 years ago. But when you sell you have to pay tax on the $40k profit even though you actually made a loss?
Lower capital gains rates are meant to adjust for this. Basically saying we understand part of the gain is inflation, so let's call it half inflation and half profit and we'll account for this by setting the capital gains rate at half the income tax rate.
Remember companies (that you might have shares in) or yourself as a land lord are (ostensibly) paying tax on profits as you go. Capital gains tax is in addition to this.
This comment is already long enough so I'll leave the conversation on whether this stuff is true in practice as an excercise for the reader, but it at least starts from a sensible place.
At least where I live (not the US), if you're day trading stocks or flipping houses you'll pay income tax not capital gains tax (ostensibly π).
Yup, and all of these are sold as benefitting the non-wealthy while glossing over how much more it benefits the wealthy.
There's nothing stopping people in the lower classes from investing.
If minimum wages are so low and working hours so long that people are too busy with their day jobs and/or don't make enough money to even think about the stock market, let's focus on fixing that rather than going after the stock market.
Bwahahahahaha
I think an argument is that because many people live paycheck to paycheck, investing simply isn't an option. Many costs in life are somewhat fixed
I buy similar groceries compared to someone who makes half what I make, and compared to someone who makes twice what I make; as a fraction of income it's a huge spread.
What this means is that making twice as much money doesn't mean you get to invest twice as much
you can invest way more, because the difference in income is largely disposable.
Or how about we don't subject companies to the enshittification whims of rich assholes and base our entire society's worth on some arbitrary values on a computer screen? If you want to gamble on line go up or down, fine, but let's divest it from how we govern our lives, because clearly it isn't working for the majority of us.
Holy shit what an idiotic thing to say.
It may surprise you to find out that "lower class" people are in the lower class because they don't have money. What are they supposed to invest?
Hahaha!
except for the whole being poor thing
Trolls of Lemmy, you can pack your bags. You will never be able to come up with something dumber than this.
I'm honestly not sure if it's trolling, or satirizing the trolls. It could go either way.
Poor people can easily find out about SPY. The issue is not the amount of time.