I keep hearing about this Amazon thing. Maybe some day I will try it.

Capital gains tax is 0% if you have less than $37k in wages

Am I reading this right?
https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States#Current_.282016.29_law

Most of the controversy over the capital gains tax that I've read is that the maximum capital gains tax is 20%

The part about it being 0% seems like an obvious handout to the rich.
Permalink Wabi-sabi 
March 16th, 2017 10:22pm
Talking only about long-term capital gains.
Permalink Wabi-sabi 
March 16th, 2017 10:22pm
Thanks, I didn't know that. Looks like it can be presented as helping the poor, people who are low income. But people who are low income and have tons of stock earnings tend to actually be the extreme wealthy. Steve Jobs, earned income $1 a year. So as a low income earner he paid no taxes at all on his stock gains. Amazing.
Permalink Pegular Roaster 
March 16th, 2017 10:26pm
It's pretty outrageous.

If I do no work (no earned income) but take $50k in capital gains and qualified* dividends I pay $0 in federal taxes.

Literally everyone else in my neighborhood pays more taxes than me for working for a living.

What the fuck.

* Qualified means they get taxed at the LTCG rate
Permalink Wabi-sabi 
March 16th, 2017 10:30pm
I agree.

I guess I should quit my job or switch to stock compensation only for any year I want to sell.
Permalink Pegular Roaster 
March 16th, 2017 10:46pm
The reason society places a tax on work that is higher than that for capital gains, is because society want people to invest rather than working.
Permalink Markowitch 
March 17th, 2017 1:53am
The reason society has capital gains taxes lower than taxes on wages is to punish people poor enough that they have to work for a living - and to reward others for dropping out of lucky vaginas.
Permalink Pie is a lot better than ... 
March 17th, 2017 6:58am
Not everyone who is wealthy has no earned income.

Trump, for example, paid $1.9M in self-employment taxes in 2005.

So, he would have paid one of the higher rates on capital gains.
Permalink NPR 
March 17th, 2017 7:23am
The reason society places a tax on work that is higher than that for capital gains, is because...

...the people with most of the power receive their income mostly from capital gains.
Permalink The Great Orange 
March 17th, 2017 7:27am
Also, the way it's structured is that the working poor pay no capital gains either.
Permalink NPR 
March 17th, 2017 7:28am
"...the people with most of the power receive their income mostly from capital gains."

Hehe, well yes, this is true.

My advice is become more like the super rich.
Permalink NPR 
March 17th, 2017 7:29am
The law in its majestic equality forbids both the rich and the poor alike from sleeping under bridges and on benches.
Permalink Pegular Roaster 
March 17th, 2017 9:21am
> Trump, for example, paid $1.9M in self-employment taxes in 2005.

> So, he would have paid one of the higher rates on capital gains.

You only get hit with self-employment taxes if you're actively managing the businesses you're invested in.  Presumably he's doing that because he expects to make more money managing them than he would save on taxes.

But whatevs.
Permalink Wabi-sabi 
March 17th, 2017 6:55pm
The bottom rate also applies to qualified dividends.  My retired father typically pays 0% on dividends and capital gains.
Permalink FSK 
March 18th, 2017 4:37pm

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