why does government get 35% of my investment? after 40% pay and 10% sales? tax?

Discussion in 'The Cocktail Lounge' started by Gomer, Feb 17, 2014.

  1. Gomer

    Gomer Well-Known Member

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    I mean 50% of my money gone before you even factor in the regulator compliace costs, costs of dealing with IRS and taxes, costs of gas tax, union costs driving up prices of everything and being a hidden cost in price of almost all good I eat, costs of giving welfare to non workers, moms who had kids they can't pay for, prisoners who deserve only bread and water geting nintendo games and cable and fruit.....foriegn aid to fatcat politicians in countries far away....

    this stuff is insane
     
  2. Lizard King

    Lizard King New Member

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    I always factor that in when I sell, when I think I am making a nice profit and then look at the tax, I usually hold my options longer.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I don't worry about LTCG or STCG taxes myself when buying / selling investments, although they obviously are a concern to some. I do wish they and taxes in general would be lower, of course. But they don't really factor into my current investment strategies. I max out my tax-advantaged retirement accounts, and in my main investing account I seek capital appreciation and preservation.
     
  4. canoe

    canoe Active Member

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    Yeah, taxes on investments have always been a curiosity of mine. It's weird that the government taxes people on money they earned through money they risked which has already been taxed (i.e. income tax). The US has a relatively low income tax compared to the rest of the developed countries but they have such a high capital gains tax. The thing about taxes though, is that no matter how much you hate them, you just can't avoid them. It's one of those hateful things in life you just have to tolerate and decided to embrace because otherwise, Uncle Sam will no doubt be knocking on your doorstep.
     
  5. Tigressa

    Tigressa Member

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    Because the government is a greedy moneymaking institution ;)
     
  6. crimsonghost747

    crimsonghost747 Senior Investor

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    If the numbers stated on this article are more or less true (and I understand them correctly)
    http://www.nasdaq.com/article/2014-capital-gains-tax-6-things-you-need-to-know-cm326900

    Then I must say that your capital tax is ridiculously low compared to that of most western countries.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Certain types of life insurance can be very useful in minimizing taxes - you can get tax-free appreciation the same way you get it with the Roth IRA without the low income and contribution limits you have with Roths. It can be a very good way to transfer wealth to heirs tax-free as well. This is mainly for those in the $200k+ income and $5 mil+ net worth categories.

    Muni bonds can also be a good tool for this as well. Good for tax-free icome.
     
    Last edited: Apr 3, 2014
  8. HeinrichM

    HeinrichM Active Member

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    Taxes has been part of the world for thousands of years and will not go away. Some areas are over-taxed according to me, but in the end there is not much that you can do about it. The reality is that you need to take tax into consideration when you work-out your strategy. Any profits made are not true profits until you have deducted all the costs including tax. This changes the picture very quickly and you may find that you do not have as much money to spend as what you originally thought.
     
  9. wanderingwildman

    wanderingwildman Well-Known Member

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    Taxes force me to hold off on cashing out for an extended period of time also. I live in Taiwan where the tax on employment is only 5%. It is nice to not have to deal with the high taxes in the states.
     
  10. crimsonghost747

    crimsonghost747 Senior Investor

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    But what are is the capital tax like?
     

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