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Countdown to the Tax-Rise Torpedo
01-15-2007, 09:20 AM
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#1
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Recycles dryer sheets
Join Date: Jul 2005
Posts: 147
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Countdown to the Tax-Rise Torpedo
Interesting article, specially for those who put part of their investments outside tax sheltered accounts.
http://www.lewrockwell.com/rozeff/rozeff131.html
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 09:29 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Countdown to the Tax-Rise Torpedo
Wow that guy has some big hair.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 09:44 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Cute 'n Fuzzy Bunny
Wow that guy has some big hair.
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Combined with that weird smile he looks like a relative of Gilbert Gottfried
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 11:40 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Countdown to the Tax-Rise Torpedo
What is this? A special guest piglet rapist just for MLK day?
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 11:49 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Countdown to the Tax-Rise Torpedo
Hmm, dipping into the sauce early?
I liked the part about the stock market being in a "super downtrend" that started in 2000. Somebody isnt keeping up with current events...
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 12:01 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 1,558
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Re: Countdown to the Tax-Rise Torpedo
Not that I don't think this guy is a nutball, but the S&P500 is still below its peak from 2000, so it isn't irrational to believe we are in an upswing of an overall bear market.
Quote:
Originally Posted by Cute 'n Fuzzy Bunny
Hmm, dipping into the sauce early?
I liked the part about the stock market being in a "super downtrend" that started in 2000. Somebody isnt keeping up with current events...
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 12:03 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Cute 'n Fuzzy Bunny
Hmm, dipping into the sauce early?
I liked the part about the stock market being in a "super downtrend" that started in 2000. Somebody isnt keeping up with current events...
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Nah, you must have missed our earlier thread on something Mr. Nutball wrote. From now on, I get to call the tinfoil hat permabear brigade "piglet rapists."
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 12:14 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Hamlet
Not that I don't think this guy is a nutball, but the S&P500 is still below its peak from 2000, so it isn't irrational to believe we are in an upswing of an overall bear market.
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Ehhhhhhh...selective data mining. Look at a chart of the total history of the s&p500. While the late 90's-2000 represented a heck of a hiccup, the trend from the last three years is consistent with and superior to the upward long term trend of the S&P500 prior to the "irrational exuberance" speedbump.
Unless of course, its all different now.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 02:46 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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Re: Countdown to the Tax-Rise Torpedo
Given the change in Congress it is reasonable to think the favorable dividend and capital gains rates are in jeopardy beginning in 2009. Stocks should, and will, begin to discount lower expected after-tax returns. To equate the expected after tax returns of a 15% tax rate to a 35% tax rate initial prices need to fall about 24% (although the actual impact should be less because the marginal investor is not in the 35% tax bracket).
__________________
Retired early, traveling perpetually.
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 03:23 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by 3 Yrs to Go
Given the change in Congress it is reasonable to think the favorable dividend and capital gains rates are in jeopardy beginning in 2009. Stocks should, and will, begin to discount lower expected after-tax returns. To equate the expected after tax returns of a 15% tax rate to a 35% tax rate initial prices need to fall about 24% (although the actual impact should be less because the marginal investor is not in the 35% tax bracket).
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Also, the maximum LT capital gains rate was 20% (not 35%) before the 2003 tax cuts.
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I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 03:35 PM
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#11
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Thinks s/he gets paid by the post
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by brewer12345
Nah, you must have missed our earlier thread on something Mr. Nutball wrote. From now on, I get to call the tinfoil hat permabear brigade "piglet rapists."
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I must not have been here for that thread, and I didn't bother to read the column that was linked, but I did spend some time a couple of years ago reading a lot of Rockwell's stuff. He can come across nearly sane sometimes, but he's definitely a loon. If I remember correctly, he has "guest" columnists that are mostly just as whacked out as he is.
Modified: Damn, I should have done a search for piglet sodomizers. I would have found the earlier thread and if I had bothered to read that nasty little bit of back and forth I would have kept my mouth shut.
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There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 04:25 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,450
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by FIRE'd@51
Also, the maximum LT capital gains rate was 20% (not 35%) before the 2003 tax cuts.
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so we are talking about the rate going from 15 to 20% for folks in the higher brackets....I always wonder about the folks currently taking dividends and cap gains in the 5% rate now (and going to 0 in 2008)...Most of these folks cant be significantly wealthy or at least withdrawing only enough to be lower middle class...
__________________
- Hurry! to the cliffs of insanity!
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 04:51 PM
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#13
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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Re: Countdown to the Tax-Rise Torpedo
Maddy, are you good at photoshop, or has Lord Farquaad put a bounty on your Beagle?
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 05:13 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Maddy the Turbo Beagle
I always wonder about the folks currently taking dividends and cap gains in the 5% rate now (and going to 0 in 2008)...Most of these folks cant be significantly wealthy or at least withdrawing only enough to be lower middle class...
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Perhaps most, but not in this case...63k after deductions and credits with no debt to service is a fairly decent chunk of change to figure out how to spend...
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 05:22 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Leonidas
Modified: Damn, I should have done a search for piglet sodomizers.
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Heh, I made you say "piglet sodomizers."
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 05:57 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Maddy the Turbo Beagle
so we are talking about the rate going from 15 to 20% for folks in the higher brackets....I always wonder about the folks currently taking dividends and cap gains in the 5% rate now (and going to 0 in 2008)...Most of these folks cant be significantly wealthy or at least withdrawing only enough to be lower middle class...
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Yes, and if the Dems really care about giving the "non-rich" a break they would leave those rates alone. I guess we'll just have to wait and see.
__________________
I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley
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Re: Countdown to the Tax-Rise Torpedo
01-15-2007, 06:08 PM
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#17
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Full time employment: Posting here.
Join Date: Nov 2006
Posts: 548
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Re: Countdown to the Tax-Rise Torpedo
Quote:
Originally Posted by Hamlet
Not that I don't think this guy is a nutball
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Didja not see the hair?
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