News for hackers. Stuff that matters.

A comment on U.S. bill to exempt small virtual currency transactions from CGT [pdf]. Parent comment

Re:U.S. bill to exempt small virtual currency transactions f... by htfu on Tuesday January 21, 2020 @09:24AM (#22107088)
48.65% is not 56% fyi
[ Parent | on HN ]
Re:U.S. bill to exempt small virtual currency transactions f... by chii on Tuesday January 21, 2020 @09:33AM (#22107183)
where did you get 48.65 from?
[ Parent | on HN ]
Re:U.S. bill to exempt small virtual currency transactions f... by andrewksl on Tuesday January 21, 2020 @10:57AM (#22108036)
> if a company makes a profit of $100, they'd have to pay $21 in tax, and the company's equity gain is then $79. If you then charge a 35% tax on top of the $79, then that means you've taxed the $100 profit at 56%, which is a lot higher than the normal amount. So by reducing capital gains tax to 15%, you'd end up charging only 36% in total.

35% of $79 is $27.65. Total tax according to your example would be $21 + $27.65 = $48.65.

They were being a bit pedantic, but their math is correct.

[ Parent | on HN ]
Re:U.S. bill to exempt small virtual currency transactions f... by chii on Tuesday January 21, 2020 @10:08PM (#22114223)
good spot, i miscalculated.
[ Parent | on HN ]