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They're saying if that growth occured over 60 years then you've just kept up with inflation. Might as well have just put it in a standard savings account and NO
by procombo 5y ago
They're saying if that growth occured over 60 years then you've just kept up with inflation. Might as well have just put it in a standard savings account and NOT get capital gains tax. *Well, maybe a standard money market account or bond.
- medvezhenok 5y agoBonds also incur capital gains tax) The point of the capital gains taxes/inflation is specifically to incentivize people spending money over saving (if too many people saved money the economy would contract). It's not a perfect tool, but it works somewhat.
- procombo 5y agoIncome from bonds issued by the federal government and its agencies, including Treasury securities, is generally exempt from state and local taxes.
- gizmo686 5y agoEarned interest is taxed as income at the federal level.
- procombo 5y agoOh, I know. Should it be taxed at the state level too?
- tartoran 5y agoWait, wouldn't you get taxed capital gains on a standard savings account? I'm genuinely curious even though right now saving accounts are not saving anything at all.
- leephillips 5y agoTax on interest is at a different rate than capital gains tax.
- tartoran 5y agoWhich one is higher?
- leephillips 5y agoI’m pretty sure that interest income is taxed, at the federal level, like wage income. In other words, at a higher rate than capital gains.
- loeg 5y agoLong-term capital gains are taxed at a lower rate than ordinary income and short-term capital gains (which are taxed at income rates).