Capital Gains Tax

[Lorizael]

Originally posted by MRT144
i'll be able to once I pay off some of my credit card debts and get my tax return

1005 per paycheck (i contribute 130 to 401(k) but i'll be scaling that back to 60 per paycheck) I get about 672 net after taxes 401(k). I also get 150 from my mom every month.


monthly income:1494

rent: 575
groceries: 415
cell: 49
entertainment:25 (netflix, theater)
utilities: 60 (gas is usually 40, light usually 20)
debt/savings: 350
RX: 20 (concerta)

with an extra 70 dollars per paycheck

monthly income: 1634
debt/savings: 470 per month until tax return

Hm. Your rent is slightly more than mine, but so is your income because of your mother.

What seems to be missing from your budget is transportation costs, which for me are quite considerable because I metro in to DC everyday.

[Patroklos]

I don't see a car payment, rentors insurance, health insurance or car insurance in there.

[MRT144]

Originally posted by Patroklos
I don't see a car payment, rentors insurance, health insurance or car insurance in there.

I live in downtown seattle almost. I walk to work. Health insurance is provided by my job. rent insurance might make an appearance in 2008 but really, I think i'll take the risk for a few months.

Now, say what you will about me being far from average (it's true) I do think it is possible to make certain things work in life, if you are willing to sacrifice.

The key to my lifestyle working is living in a dense, urban area and sacrificing the freedom of driving.

[MRT144]

Originally posted by Lazarus and the Gimp


Cut the umbilical, man.

tell her that! She thinks that because I go to school full time I should get some extra money for things I need.

[Lorizael]

Originally posted by Patroklos
I don't see a car payment, rentors insurance, health insurance or car insurance in there.

Renter's insurance is negligible on a monthly basis. I know that in my case, my car is paid off and my company doesn't charge for single coverage health care. I do pay car insurance, though.

I don't think MRT owns a car.

[Kidlicious]

Re: Capital Gains Tax

Originally posted by MRT144
The reason being that it hurts people that invest their money as a means of growing the value of it and then turning around and using that grown value to buy a house or something.

Every tax hurts people whether you want to save or not. You want a flat tax instead? It will hurt you the same, or more.

[MRT144]

kidicious , do you ever make a statement thay isnt hyperbole.

[Kidlicious]

Originally posted by MRT144
kidicious , do you ever make a statement thay isnt hyperbole.

?????

You can't see that any tax will prevent you from saving money?

[MRT144]

i want one tax eliminated or changed because it would benefit all people who have the opportunity to do it.

furthermore a reduction in income tax doesnt neccesariy mean more savings, it could just easily lead to more expenses. a reduction of capital gains encourages savings and investment by reducing the price of doing so.

i dont support a flat tax. why would i? why are you trying to pigeon hole me?

not all taxes are the same.

[Kidlicious]

Originally posted by MRT144
i want one tax eliminated or changed because it would benefit all people who have the opportunity to do it.

I didn't argue with you on that.

furthermore a reduction in income tax doesnt neccesariy mean more savings, it could just easily lead to more expenses.

Income tax prevents you from saving money. That's what I said. You can't save money when you pay it to someone else. Furthermore, a lower capital gains tax doesn't necessarily mean that you save more either.

a reduction of capital gains encourages savings and investment by reducing the price of doing so.

I never argued with you on that either.

i dont support a flat tax. why would i? why are you trying to pigeon hole me?

I just gave an example. Most people who don't like the capital gains tax like the flat tax.

not all taxes are the same.

They are the same in the fact that they prevent you from saving money as well as spending it.

[MRT144]

the problem with teh capital gains tax is that it only applies when you ARE saving money though. and yes there are tax deferred investment plans but none of them tackle short term savings for large expenditures like houses.

[Kidlicious]

Originally posted by MRT144
the problem with teh capital gains tax is that it only applies when you ARE saving money though.

That's not a personal problem. That's my point. You can choose not to pay a capital gains tax. You can not choose not to pay an income tax, not legally anyway, and assuming that you need income to live. Choice is good.

[MRT144]

Originally posted by Kidicious


That's not a personal problem. That's my point. You can choose not to pay a capital gains tax. You can not choose not to pay an income tax, not legally anyway, and assuming that you need income to live. Choice is good.

your choices are like offering someone the choice between killing their father or raping their grandmother.

I guess you dont believe that the government should reduce taxes in some places to encourage a net benefit to the person making the decision and the government itself.

your alternative of not saving for the future in some capacity is ridiculous and out of touch with america and sensibility. a damned if you dont, less damned if you do situation is poor government in action.

[Kidlicious]

Originally posted by MRT144
your choices are like offering someone the choice between killing their father or raping their grandmother.

What a load of bull?! Or hyperbole if you like.

I guess you dont believe that the government should reduce taxes in some places to encourage a net benefit to the person making the decision.

That's not true at all. I just don't believe that lower capital gains help the economy anymore than lowering other taxes. And I think I've made myself clear about that by stating that lower taxes help people save money.

your alternative of not saving for the future in some capacity is ridiculous and out of touch with america and sensibility. a damned if you dont, less damned if you do situation is poor government in action.

hyperbole

[MRT144]

has the savings rate gone up in light of tax cuts across the board?

would a reduction in capital gains tax encourage more long term investment for people that absolutely will need to save for their future? I dont care about helping the economy with this tax reduction, I care about helping people that make less money benefit from the same system that makes lots of money in the long haul.

anyway, you're just repeating yourself here. you obviously dont understand the concept of taxes having a secondary effect of incentives or disincentives.