Biden's record-setting tax increases will take your money

[Peter1469]

Joe Biden's favorite dance?

He likes the slow dance so he can sniff hair.

[carolina73]

To be fair, very few small businesses are C-Corps and pay corporate taxes. They get raped at the individual rate as S-Corps or LLC's.

The unfair part is Warren Buffet, Mitt Romney and friends that avoid individual tax rates by taking everything as capital gains and then pay the low rate. That is the loophole that allows Warren Buffet to pay a much lower rate than his secretary. It is also why he was laughing as he said we should raise the income tax on the rich. He doesn't pay income tax. Technically he does. I believe he takes a 100 grand salary for running Berkshire Hathaway.
So when the rich say to raise income tax then tell then to tax capital gains like income and watch them scream bloody murder.

[Peter1469]

To be fair, very few small businesses are C-Corps and pay corporate taxes. They get raped at the individual rate as S-Corps or LLC's.

The unfair part is Warren Buffet, Mitt Romney and friends that avoid individual tax rates by taking everything as capital gains and then pay the low rate. That is the loophole that allows Warren Buffet to pay a much lower rate than his secretary. It is also why he was laughing as he said we should raise the income tax on the rich. He doesn't pay income tax. Technically he does. I believe he takes a 100 grand salary for running Berkshire Hathaway.
So when the rich say to raise income tax then tell then to tax capital gains like income and watch them scream bloody murder.

The plan Joe was told was his plan would raise the capital gains rate to 40%. I discussed why that was bad above.

[Newpublius]

To be fair, very few small businesses are C-Corps and pay corporate taxes. They get raped at the individual rate as S-Corps or LLC's.

The unfair part is Warren Buffet, Mitt Romney and friends that avoid individual tax rates by taking everything as capital gains and then pay the low rate. That is the loophole that allows Warren Buffet to pay a much lower rate than his secretary. It is also why he was laughing as he said we should raise the income tax on the rich. He doesn't pay income tax. Technically he does. I believe he takes a 100 grand salary for running Berkshire Hathaway.
So when the rich say to raise income tax then tell then to tax capital gains like income and watch them scream bloody murder.

What they should do is to eliminate C-Corp taxation altogether and treat LTCG as ordinary income.

[Peter1469]

The cost of Biden’s economic plan to the stock market is more than you might think

While momentum investors are increasingly focused on ever-higher stock prices, prudent investors should start focusing on the presidential election.Democratic front-runner Joe Biden released his “Buy American” economic plan to challenge President Trump. Still, investors need to ask how Biden would pay for the plan. He could take away Trump’s tax cuts for corporations and the rich. But Biden and Trump might also share a strategy: Borrow more and influence the Federal Reserve to print more money.

Readers know that I am politically agnostic. My sole job is to help investors. Let’s explore the issue with the help of a chart.

Chart


Please click here for an annotated chart of the Dow Jones Industrial Average ETF DIA, +1.39%, which tracks the Dow Jones Industrial Average DJIA, +1.43%. Note the following:

• The chart is monthly, giving investors a long-term perspective.
• The chart shows the middle support zone.

• The chart shows that based on Biden’s tax policies, the stock market in theory should drop to the middle buy zone. This is about a 20% drop in the stock market.
• Prudent investors should protect themselves from the tail risk of the stock market falling to the “mother of all support zones” shown on the chart.
• The chart shows Arora buy signals and calls for the Dow Jones Industrial Average to reach 30,000 points. From 2012 to today, the majority of the rise in the stock market is attributable to the Fed’s enlarged balance sheet and lower interest rates. Please see “Here’s the case for Dow 30,000 in Trump’s first term.”
• The big money is hiding in the five large-cap tech stocks of Apple AAPL, +0.24%, Amazon AMZN, +0.54%, Microsoft MSFT, -0.30%, Alphabet GOOG, +2.03% GOOGL, +1.34% and Facebook FB, +0.23%. Those five stocks are experiencing a significant “pile-on” effect — buying for reasons that have nothing to do with fundamentals.

• Keep an eye on stocks that would benefit from the Biden plan. Examples include Tesla TSLA, +10.78%, Canopy Growth CGC, +8.73% and Centene CNC, -0.74%.

Five contributors to a stock market drop



Here is a simple calculus of what, in theory, should happen with Biden’s tax policy.

Read the rest of the article at the link.