3 ms·

> When you invest in a venture, you pay taxes on the profits. You pay taxes on the dividends it throws off. Whatever accumulated value remains when you sell you

> When you invest in a venture, you pay taxes on the profits. You pay taxes on the dividends it throws off. Whatever accumulated value remains when you sell your share gets hit by capital gains tax. This is not true. When you invest in a venture, hold its stock for 60 days, and it pays you its profit, this income is considered "qualified dividends" and is subject to capital gains tax. > The "tax on money you made with money you have" is the combination of the profit tax, dividend tax, and capital gains tax. What are "profit tax" and "dividend tax"? These are not terms used in USA. From the IRS rules: > Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates. https://www.irs.gov/taxtopics/tc404 https://www.irs.gov/taxtopics/tc404 > Qualified Dividends > Holding period. You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. https://www.irs.gov/publications/p550#en_US_2020_publink100010075 https://www.irs.gov/publications/p550#en_US_2020_publink1000...

SilasX 5y ago
>This is not true. When you invest in a venture, hold its stock for 60 days, and it pays you its profit, this income is considered "qualified dividends" and is subject to capital gains tax. And? Okay, that's a) a special case, and b) confirmation of the point I was making that you get taxed on dividends (and on capital gains) only as one piece of total "capital income taxation". (The fact that something is taxed at the capital gains rate does not somehow mean that the dividends were not taxed, as you seem to be implying.) >What are "profit tax" and "dividend tax"? These are not terms used in USA. It sounds like you're just trying to be difficult and uncurious at the cost of a productive discussion. I was speaking in the most lay, general terms. Profits are taxed. Dividends are taxed. In normal, ordinary usage of English, one can refer to those taxes as "profit taxes" and "dividend taxes", even if the technical term is different. (Your native language probably does the same.) If I go through you posting history, am I going to find you always using the technical term? Yes, the "profit tax" I referred to would be more technically referred to as the corporate income tax. The dividend tax also might have a more technically accurate term, similarly irrelevant to this context or point. >Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates. I don't know why you think this is relevant to my point. It just means sometimes the rate is different from "the" capital gains tax. In no way does it refute that the events of profit and dividend payment are subject to a separate tax, making the "capital gains tax" an incomplete picture of the tax rate on capital income. If you agree with that latter point, then you agree with my comment, and you're just cluttering the discussion with misdirection and red herrings.
- mleonhard 5y ago
  The top-level comment said "Great, what we should be doing is taxing capital gain at a hire [SIC] rate than physical labor. Why does anyone think it's OK to pay less on money you made with money you have?" You replied with "Because the capital gains tax is only a portion of the tax applied to capital income." You went on to list several kinds of taxes. My reply shows that the taxes you listed are all capital gains tax. To support your claim, you could list taxes that are not capital gains tax. > > Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates. > I don't know why you think this is relevant to my point. It just means sometimes the rate is different from "the" capital gains tax. No. Please take a few minutes to read the sections I linked to. Here's an article that explains it https://www.investopedia.com/ask/answers/12/how-are-capital-gains-dividends-taxed-differently.asp https://www.investopedia.com/ask/answers/12/how-are-capital-... .

SilasX 5y ago

>This is not true. When you invest in a venture, hold its stock for 60 days, and it pays you its profit, this income is considered "qualified dividends" and is subject to capital gains tax. And? Okay, that's a) a special case, and b) confirmation of the point I was making that you get taxed on dividends (and on capital gains) only as one piece of total "capital income taxation". (The fact that something is taxed at the capital gains rate does not somehow mean that the dividends were not taxed, as you seem to be implying.) >What are "profit tax" and "dividend tax"? These are not terms used in USA. It sounds like you're just trying to be difficult and uncurious at the cost of a productive discussion. I was speaking in the most lay, general terms. Profits are taxed. Dividends are taxed. In normal, ordinary usage of English, one can refer to those taxes as "profit taxes" and "dividend taxes", even if the technical term is different. (Your native language probably does the same.) If I go through you posting history, am I going to find you always using the technical term? Yes, the "profit tax" I referred to would be more technically referred to as the corporate income tax. The dividend tax also might have a more technically accurate term, similarly irrelevant to this context or point. >Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates. I don't know why you think this is relevant to my point. It just means sometimes the rate is different from "the" capital gains tax. In no way does it refute that the events of profit and dividend payment are subject to a separate tax, making the "capital gains tax" an incomplete picture of the tax rate on capital income. If you agree with that latter point, then you agree with my comment, and you're just cluttering the discussion with misdirection and red herrings.

mleonhard 5y ago
The top-level comment said "Great, what we should be doing is taxing capital gain at a hire [SIC] rate than physical labor. Why does anyone think it's OK to pay less on money you made with money you have?" You replied with "Because the capital gains tax is only a portion of the tax applied to capital income." You went on to list several kinds of taxes. My reply shows that the taxes you listed are all capital gains tax. To support your claim, you could list taxes that are not capital gains tax. > > Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates. > I don't know why you think this is relevant to my point. It just means sometimes the rate is different from "the" capital gains tax. No. Please take a few minutes to read the sections I linked to. Here's an article that explains it https://www.investopedia.com/ask/answers/12/how-are-capital-gains-dividends-taxed-differently.asp https://www.investopedia.com/ask/answers/12/how-are-capital-... .