Re:Billionaires should face a minimum tax rate, report says
by Cicero22 on Monday October 23, 2023 @11:00AM
(#37986605)
I haven't heard that you're taxed when you lose money. My understanding was that If I invest $10,000 in a taxable account, lose $1,000, and withdraw the remaining $9,000, I won't pay taxes on the $9,0000 (ignoring transaction fees).
Re:Billionaires should face a minimum tax rate, report says
by antisthenes on Monday October 23, 2023 @11:18AM
(#37986898)
> The lower tax rates on capital reflect the reality that you are paying taxes on the losses too
No, you don't.
You actually get a tax credit (e.g. you pay LESS taxes), if you incur certain types of capital losses.
Re:Billionaires should face a minimum tax rate, report says
by jandrewrogers on Monday October 23, 2023 @12:18PM
(#37987829)
The tax reduction against income for capital losses rounds to zero for all practical purposes. Long-term inflation losses are not deductible at all in the US even though they can often exceed notional returns.
Re:Billionaires should face a minimum tax rate, report says
by antisthenes on Monday October 23, 2023 @02:54PM
(#37989973)
That's not what your original comment said at all.
You still haven't pointed out which capital losses get you taxed more. If you were referring to inflation, then why not just say that directly?
Tax rates ideally should be flat for all sources of income net of risk, loss, and inflation. To achieve this you either allow deductions for these, which are limited or non-existent in the US, or you lower the tax rates to offset the fact that you can't deduct these.