Tax the Rich, Trump edition, 2025
-
wrote 24 days ago last edited by Axtremus 5 Sept 2025, 08:00
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."
-
wrote 24 days ago last edited by
I seem to recall somebody on here saying Trump was a Clinton era Democrat…
-
wrote 24 days ago last edited by
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.
-
wrote 24 days ago last edited by
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"
-
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"
wrote 24 days ago last edited by@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.
-
@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.
wrote 24 days ago last edited by@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.
-
wrote 23 days ago last edited by
I wonder if President Trump is thinking of raising the tax on things like capital gains, etc., rather than just work in come?
-
I wonder if President Trump is thinking of raising the tax on things like capital gains, etc., rather than just work in come?
wrote 23 days ago last edited by@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.
-
wrote 23 days ago last edited by
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.
-
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.
wrote 23 days ago last edited by Horace 5 Sept 2025, 14:53@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.
-
wrote 23 days ago last edited by
The exception being founder shares of it’s a someone like Zuck or Gates
-
wrote 23 days ago last edited by
Not necessarily limited to "founder's shares." Any share that appreciates bigly and held longer than one year (after vesting) will provide big tax savings by being taxed at long term capital gains rates vs. ordinary income rates.
More likely than not, those in senior management in big corporations benefit from this.
-
Not necessarily limited to "founder's shares." Any share that appreciates bigly and held longer than one year (after vesting) will provide big tax savings by being taxed at long term capital gains rates vs. ordinary income rates.
More likely than not, those in senior management in big corporations benefit from this.
wrote 23 days ago last edited by@Axtremus said in Tax the Rich, Trump edition, 2025:
Not necessarily limited to "founder's shares." Any share that appreciates bigly and held longer than one year (after vesting) will provide big tax savings by being taxed at long term capital gains rates vs. ordinary income rates.
More likely than not, those in senior management in big corporations benefit from this.
There's nothing special about such capital gains, as compared to having been given cash compensation and then investing it in one's own company. In both cases, the original compensation is taxed as income, and the gains or losses are at the whim of the market that the general public can also participate in if they choose to.
-
wrote 23 days ago last edited by Axtremus 5 Sept 2025, 17:55
More likely than not, senior management in big corporations get pay packages that include substantial amounts of restricted stocks, and more likely than not, they cannot negotiate to say "give me cash instead of stocks" or "give me that other company's stocks instead."
Fastest they can convert the restricted stocks into something else is to cash out as soon as they vest -- in that case ordinary income tax rates apply.