WH pitches temporary “holiday” on capital gains taxes

I'd do what probably 99% would do: sell all my holdings with capital gains, and reinvest it with a new basis, probably in the same holdings. Absolutely no new investment to stimulate the economy. I guess my spending might go up a little because I wouldn't have that future tax liability to worry about.
 
I doubt it will pass, and I don't think it's particularly good policy, so I would be opposed to it. If it does pass, though, I'll be selling and immediately re-buying and recommending my friends and family consider the same strategy.

The article linked in the OP has political overtones; hopefully this thread stays on FIRE economics and stays away from Mr. Pig.
 
Both sides need stuff to negotiate away.
 
Article is behind a pay wall for me...but I think i get the gist.

Horrible idea on lots of levels.

Like others, if for some reason it came to pass, I would rinse my capital gains out and reload at a higher cost basis.
 
It's behind a paywall so I couldn't read. The title speaks of the bias behind the opinion piece--anyone with capital gains is "rich".

Anyhow-I doubt anything like this will go into effect, but I would make some fund round trips to take advantage of it.
 
RunningBum said:
I'd do what probably 99% would do: sell all my holdings with capital gains, and reinvest it with a new basis, probably in the same holdings. Absolutely no new investment to stimulate the economy. I guess my spending might go up a little because I wouldn't have that future tax liability to worry about.
Click to expand...
+1, same thing I was thinking though I’d simplify my portfolio some too, fewer holdings in total. But there’s no way it would pass...
teejayevans said:
We need a tax free holiday for IRA withdrawals! :)
Click to expand...
Yeah! I’d roll our TIRAs into Roth’s at once and quit careful conversions. But no way that would pass either, so I’m not sure why I’m posting...
 
Last edited:
You do realize that you linked to an "opinion" piece? I thought linking to a possibly politically slanted editorial story was a nono on this site...
 
ivinsfan said:
You do realize that you linked to an "opinion" piece? I thought linking to a possibly politically slanted editorial story was a nono on this site...
Click to expand...

Thank you for saying what I was thinking!!

Opinion pieces are not helpful for discussing the facts, no matter
which side the opinion resonates from.

VW
 
VanWinkle said:
Thank you for saying what I was thinking!!

Opinion pieces are not helpful for discussing the facts, no matter
which side the opinion resonates from.

VW
Click to expand...

WAPO is paywalled to death anyway so nobody can read the piece. and then it's just comments about something we haven't read.

Of course it's hard to post links to anything that isn't paywalled in today's times.
 
mrfeh said:
+1

There's no way this passes. Politically, it is absolutely tone-deaf.
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They pass tone deaf legislation all the time, usually packaged with and featuring something less so.
 
Since some of the mutual funds and stocks I have owned for over 25 years, this would benefit me greatly personally. But it doesn't make sense. As others mentioned, it would just cause a "churn" of selling and rebuying the same stuff.

One alternative would be to "temporarily" tax tIRA and t401K withdrawals for those over age 59.5 at the lesser of the capital gains rate or one's income tax rate. I am totally biased since I have a large 401k, but would be more likely to make withdrawals for spending purposes, *if* the goal is to increase folks spending. Just a thought from a non-expert. :)
 
ivinsfan said:
You do realize that you linked to an "opinion" piece? I thought linking to a possibly politically slanted editorial story was a nono on this site...
Click to expand...

I did notice it's an opinion but I figured we don't need to pay attention to that part - the actual proposal is what matters. Tbh - as most of us concluded it has slim chances of passing but slim is not the same as "none". It all depends on how it's dressed up and constructed.
 
I've searched for possible other articles but found little else that wasn't simply opinion vs. a financial piece. So I chalk it up to one of those trial balloon ideas that isn't going anywhere.

My personal opinion is this would not make it past the first round of red lines in any potential new bill.
 
They do this stuff to throw red meat to the base, they know it is D O A.
 
This is not a proposal. It’s just one idea POTUS expressed in one Tweet and then mentioned in passing this past Sunday on a CNN interview with Kevin Hassett (White House Council of Economic Advisers Chairman).

There is nothing proposed or under consideration in any legislative chamber.
 
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