Countdown to the Tax-Rise Torpedo

[camberiu]

Interesting article, specially for those who put part of their investments outside tax sheltered accounts.

http://www.lewrockwell.com/rozeff/rozeff131.html

 

[cute fuzzy bunny]

Wow that guy has some big hair.

 

[saluki9]

Wow that guy has some big hair.

Combined with that weird smile he looks like a relative of Gilbert Gottfried

 

[brewer12345]

What is this? A special guest piglet rapist just for MLK day?

 

[cute 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...

 

[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.

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...

 

[brewer12345]

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...

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."

 

[cute fuzzy bunny]

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.

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.

 

[Gone4Good]

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).

 

[FIRE'd@51]

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).

Also, the maximum LT capital gains rate was 20% (not 35%) before the 2003 tax cuts.

 

[Leonidas]

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."

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.

 

[maddythebeagle]

Also, the maximum LT capital gains rate was 20% (not 35%) before the 2003 tax cuts.

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...

 

[laurence]

Maddy, are you good at photoshop, or has Lord Farquaad put a bounty on your Beagle?

 

[cute fuzzy bunny]

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...

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...

 

[brewer12345]

Modified: Damn, I should have done a search for piglet sodomizers.

Heh, I made you say "piglet sodomizers."

 

[FIRE'd@51]

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...

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.

 

[DRiP Guy]

Not that I don't think this guy is a nutball

Didja not see the hair?