[quote=ocrenter][quote=flu]Bump so the $400k/450k limits for the 20% cap gain tax rate IS incremental.
But it’s a pretty f..d up law.
Basically, it punishes wage earners that make that income in the majority in income, while it’s much for forgiving on people who are hitting those limits via capital gains…
For joint filers, if your AGI is $500k for example, it depends on where that income is coming from.
If $450k was from your W2/1099 and $50k was from capital gains, then what ends up happening is the entire $50k in capital gains gets taxed at 20%.
If, however, your W2/1099 income was $200k, and your capital gains was $300k, then $250k of your capital gains get’s taxed at 15% (up to the $450k threshold) and the remaining $50k of your capital gains gets taxed at 20%.
So who loses in this?
1) Doctors/lawyers who get most of their income as wages.
Who wins?
2) I’m guessing people who get their AGI mostly from investments…
agree the 5%ers are always getting screwed by the 1%ers. yet when it come time for their class warfare, we are suppose to have their back.[/quote]
2-5%’ers get hit on the freeway both ways. It doesn’t matter who’s in charge. Rich people think you’re middle class. And middle class thinks your rich… You’re screwed both ways… You end up bearing the brunt of class warfare both ways…It’s been like that for some time…heh heh…
I stopped caring about my “salary” increase for some time. Those 4-6% increases might be able to pay for a few extra cups of starbucks coffee (which I don’t drink)…I’ll argue of stock compensation instead. Fortunately, I like what I’m doing…That and building up passive income for this very reason…Adapt, or die..
