Tax the Rich, Trump edition, 2025

[Axtremus]

https://www.nytimes.com/2025/05/08/us/politics/trump-new-tax-bracket.html

Trump wants to "create a new top income bracket for people making more than $2.5 million per year and to tax income above that level at a rate of 39.6 percent."

[LuFins Dad]

I seem to recall somebody on here saying Trump was a Clinton era Democrat…

[Horace]

I was just mentioning today in a discussion about whether more accountants at the IRS was politically tenable, that "tax the rich" is a big overlap between the parties now. "Tax the cheaters" is probably an even bigger overlap.

[taiwan_girl]

Is income considered all monies coming in, or just from work? Because I think most rich people - the yearly money comes from other than a "salary"

[LuFins Dad]

@taiwan_girl said in Tax the Rich, Trump edition, 2025:

Is income considered all monies coming in, or just from work? Because I think most rich people - the yearly money comes from other than a "salary"

All realized gains.

[Axtremus]

@LuFins-Dad said in Tax the Rich, Trump edition, 2025:

@taiwan_girl said in Tax the Rich, Trump edition, 2025:

Is income considered all monies coming in, or just from work? Because I think most rich people - the yearly money comes from other than a "salary"

All realized gains.

But, still, long term capital gains are taxed at a much lower rate than earned income.

[taiwan_girl]

I wonder if President Trump is thinking of raising the tax on things like capital gains, etc., rather than just work in come?

[LuFins Dad]

@taiwan_girl said in Tax the Rich, Trump edition, 2025:

I wonder if President Trump is thinking of raising the tax on things like capital gains, etc., rather than just work in come?

Doubt it.

[taiwan_girl]

Then probably the "net affect" will be close to zero. From my understand, if you look at something like CEO pay, 90+% is non salary.

[Horace]

@taiwan_girl said in Tax the Rich, Trump edition, 2025:

Then probably the "net affect" will be close to zero. From my understand, if you look at something like CEO pay, 90+% is non salary.

Stock based compensation is taxed as income. If you get a million dollars of stock, it is taxed at a million dollars of normal income. If you then happen to hold that stock, rather than sell immediately, then whatever profit you eventually make would be cap gain. Or you could lose, if the stock goes down after it is granted.

[jon-nyc]

The exception being founder shares of it’s a someone like Zuck or Gates