Owner-occupiers typically pay no tax on capital gains and can deduct mortgage interest from their income-tax bills.
Investors have tax on interest, dividends, 0bamacare tax, capital gains taxed at regular income, SEC fees, inflation, etc.
Capital gains, dividends and earned interest would be tax free.
Also on the table: ending agriculture subsidies, increasing the gas tax, taxing capital gains and interest as ordinary income, reducing some of the spending in the new health care law and freezing pay for government workers.
Then there will most likely be a hike in dividend and interest income tax rates as well as capital gains.
Like it or not, under existing tax law, carried interest is capital.
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In addition to lower corporate and personal income taxes, Singapore also has no capital-gains tax, no tax on bank interest and no dividends tax.
His proposal scraps the entire existing code, including capital gains, interest and dividend income, the estate tax, and the payroll tax that funds Social Security and Medicare.
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But unlike all of those folks, they are getting paid with this carried interest and paying tax at a lower capital gains rate instead of the usual ordinary income rate.
The public and their politicians are treated to perpetual squabbles about the exact effects of raising interest rates or of cutting the capital-gains tax or whatever and conclude that economists disagree about everything and understand nothing.
In Britain the new government is considering raising capital-gains tax and closing loopholes, and a decision is expected soon from Australia's tax office about whether the country should tax carried interest as income or capital gains.
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Low capital gains tax rates and low tax rates on dividends and interest allow him to support his family without taking very much investment risk or having to work at a full time job.
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It raised the capital gains tax just before the savings and loan meltdown and high interest rates would slow the economy.
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If a buyback raises the debt-to-equity ratio, it can lower the firm's overall cost of capital (because in most countries interest payments, unlike dividends, are tax deductible).
On taxes, Paul would extend the Bush tax cuts, reduce the corporate income tax to 15%, and abolish the estate tax and taxes on interest, dividends, and capital gains.
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They will pay an additional 0.9% in Medicare tax, and a proposed (additional) 3.8% tax on unearned income (including interest, dividends and capital gains).
And in the meantime all sorts of tax increases are in prospect, on interest earnings, capital gains and above all on energy, including petrol.
First, tax losses represent an interest-free loan that defers capital gains taxes you would otherwise owe into the distant future, and can even eliminate them entirely when you die.
Meanwhile, the 3.8-percent tax on unearned income, like capital gains, dividends, and interest, will discourage saving and investment.
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Redeem on Dec. 9 and you have effectively converted a chunk of interest income into a (for you, tax-free) capital gain.
Using tax loss harvesting to defer capital gains taxes is like receiving an interest-free loan from the IRS. Also, if you (and your spouse) are still holding the shares when you die, your heirs will receive a stepped-up basis, and you will have gotten the up-front benefit from tax loss harvesting while avoiding the taxes on the back end entirely.
They allow the owner to invest in shares, bonds and cash, and accrue interest, dividends and capital returns, without paying any further income or capital gains tax.
High-income people will jump at the chance to pay a 15% rate rather than 35% and have all of their interest, dividends, capital gains, rents, royalties, etc. exempt from tax.
If the distribution that you take from your Roth IRA is greater than the amount of all of your contributions and conversions (regardless of the age of the conversions), then the amount that represents gains (earnings, capital gains, interest or dividends) will be subject to both penalty and ordinary income tax.
We could start with a little mind experiment: imagine that interest and bonds were tax free in their returns, but that dividends and capital gains on stocks were taxed at 100%?
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Carried interest is a share of a partnership's profits that is taxed at capital-gains tax rates rather than at higher income-tax rates.
X-tax, there was no taxation of financial income (dividends, capital gains and interest income) at the individual level, and hence no double taxation of saving.
It then calls for extending the Bush tax cuts for the wealthy, eliminating taxes on interest, dividends, and capital gains for low- and middle-income people (money made from investing, basically), and reducing the corporate tax rate, among other tax cut proposals.
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Another really good example of the tension in tax policy is the current excitement about hedge fund managers getting capital gains treatment on their carried interest.
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