White House considering ways to incentivize U.S. households to invest in the stock market.

Sectorseven

Member
Oct 25, 2017
3,717

WASHINGTON — As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions.

The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one scenario, a household earning up to $200,000 could invest $10,000 on a tax-free basis, although officials noted these numbers are fluid.

“Nothing’s ruled out,” said one senior administration official. “Nothing’s been ruled in, either.”

The development comes as President Donald Trump seeks reelection this fall. He has sought to distinguish himself from his potential Democratic rivals by accusing of them of pursuing “socialist” policies while he has touted tax cuts and deregulation under his administration.

After the Great Recession, the percentage of American households owning stocks fell to 52% from 62% before the crisis, according to Gallup. That percentage reached 55% in 2019, a year when the stock market hit record highs.

The tax break, if enacted, would represent “a pretty substantial amount of money for people” to have for retirement, according to Stephen Moore, economist at the conservative Heritage Foundation and close confidante of the White House.
 

DrewFu

Member
Apr 19, 2018
8,936
I'm ok with this, in theory. If it opens up the ability for more people to invest, that is a good thing for everyone.
 

Kasai

Member
Jan 24, 2018
1,627
Yeah, no. I'm not a fan of trying to pump the stock market up with government money to inflate economic health reports.

Why not invest in infrastructure and jobs and healthca-and now I'm sad.
 

empyrean2k

Member
Oct 27, 2017
377
Wouldn’t this just benefit all the rich who currently own most of the stock? Big influx of new cash raises prices they then sell and new people who invested lose out as company valuations normalise?
 

Godfather

Avenger
Oct 25, 2017
1,421
Maybe if fewer people were living paycheck to paycheck, they'd be able to invest a little bit.
 
Oct 27, 2017
16,564
Wouldn’t this just benefit all the rich who currently own most of the stock? Big influx of new cash raises prices they then sell and new people who invested lose out as company valuations normalise?
Under one scenario, a household earning up to $200,000 could invest $10,000 on a tax-free basis, although officials noted these numbers are fluid.
Does't sound like it, at least not entirely
 

lmcfigs

The Fallen
Oct 25, 2017
8,845
yeah this wouldn't be the worst thing in the world. but probably we should be encouraging people to make use of retirement accounts.
 

WedgeX

Member
Oct 27, 2017
5,633
This reminds me of the time Bush tried to privatize Social Security, with the idea that people would instead invest in the stock market, just before the markets crashed in 2007. So propping up the markets with infusions of government funds.

Then - Social Security funds
Now - our tax dollars we really need to pay for infrastructure, the social safety net, etc.
 

Baconmonk

Avenger
Oct 26, 2017
5,269
Why are we calling the US stock market gambling? What are the folks in here doing with their retirement funds, stashing them under the mattress?

This seems good on the surface, more folks being able to invest in their future is a good thing.
 

Foffy

Member
Oct 25, 2017
6,902
GOP is gonna one day argue those who don't have access to the market would be given grounds to be evicted from the country.

We need degrowth, the ones who destroyed the economy in 2008 still need to be jailed, and we need to stop determining the "objective" goal of society is GDP and market growth.

Hard pass on this, especially considering who is pushing it.
 

CISphil

Member
Oct 27, 2017
174
Wouldn’t this just benefit all the rich who currently own most of the stock? Big influx of new cash raises prices they then sell and new people who invested lose out as company valuations normalise?
Ding! You got it.

This is clear as day what's going on and remember that when you read people defending this later that they only want to boost their own portfolio and damn the rest of you. This dude does not fucking care about average people.
 

Mammoth Jones

Member
Oct 25, 2017
6,475
New York
You gonna give us back our initial investment if the market tanks? Of course not. Hence why folks don’t invest.

People only invest wheat they can afford to lose. When your household is operating in the DEEP red, you don’t take that kinda risk. Want them to invest? Invest in them. Education, Healthcare. Get folks moving and working and making more money. Then they’ll invest.
 

PeskyToaster

Member
Oct 27, 2017
6,275
raise wages so people have more income to invest rather than use for daily needs? provide health care and other safety nets so people feel more comfortable not hanging onto every cent because their lives do depend on it?


????????????????????????????????????????????????

The problem is people are extremely short-sighted so they see the initial hit to their yearly reports and not the massive amount of growth they'd get down the line if the % of people investing jump nearly 10%
 

DrewFu

Member
Apr 19, 2018
8,936
Ding! You got it.

This is clear as day what's going on and remember that when you read people defending this later that they only want to boost their own portfolio and damn the rest of you. This dude does not fucking care about average people.
The average person is perfectly capable, fanatically, to invest. This doesn't just help rich people.

edit: nvm, I was wrong
 
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WedgeX

Member
Oct 27, 2017
5,633
raise wages so people have more income to invest rather than use for daily needs? provide health care and other safety nets so people feel more comfortable not hanging onto every cent because their lives do depend on it?


????????????????????????????????????????????????
So many real things they could do. But nope.
 

ZealousD

Community Resettler
Member
Oct 25, 2017
2,269
Hold on, I have an idea.

What if... we encouraged people to put their retirement savings in the stock market. We give them a savings account that they are not supposed to touch until they retire. They put in a little money, their employer can match some of that money. That employer match encourages them to put their money in the account rather than stuffing it under the bed. The stock market gets that extra liquidity and people get more money than they put in at the end. Everybody wins!

I think this is a very novel and unique idea. Nobody's ever tried it before!
 

Alcotholic

Member
Oct 27, 2017
3,911
So give more money to corporations as regular folk who might have invested would probably cash in after a short period since they don't make enough to live and the same issue persists.
 

CISphil

Member
Oct 27, 2017
174
The average person is perfectly capable, fanatically, to invest. This doesn't just help rich people.
I knew you'd be one to defend it already, don't worry. I'm just gonna bow out while that happens, or the thread dies in a page or 2, cause I really don't have a productive add to this thread anyway.
You knew I'd be the person who thinks more people being able to invest more is good? Thanks!
Yep, thread going exactly as I thought.
 

Kernel

Member
Oct 25, 2017
9,773
Reduce government revenue in order to necessitate further cuts to programs and then reduce government revenue..... rinse and repeat.
 

DrewFu

Member
Apr 19, 2018
8,936
I knew you'd be one to defend it already, don't worry. I'm just gonna bow out while that happens, or the thread dies in a page or 2, cause I really don't have a productive add to this thread anyway.
You knew I'd be the person who thinks more people being able to invest more is good? Thanks!
 

Parthenios

The Fallen
Oct 28, 2017
4,543
If you are making $x tax free to put in the stock market, then you are taking tax dollars and putting them directly in the stock market. Take a guess at who this benefits and who it hurts.

Also, let's think about who is proposing this and why: "the economy" is frequently and lazily just "the Dow" so if you can boost the stock market (which is synonymous with "boosting the economy") and Presidents with "good economies" more often win re-election...
 

JVIDICAN

Member
Oct 25, 2017
2,532
Chicagoland
It's not a bad idea in itself but with the other posion pills sure to be included in this "tax cut" it isn't making it through the house.
 

Tempy

Member
Oct 25, 2017
2,500
Taxes which would be going to the government for healthcare/education/infrastructure would be going to the stock market instead and big companies would profit. Highly doubt the government/people will see a return of investment from more taxes paid by those companies.
 

AstronaughtE

Member
Nov 26, 2017
2,162
The stock market should be what incentivizes people to the stock market. Give people money to spare and let them decide whether or not they want to invest in. This sounds like a way just to scoop up disenfranchised Democrats not happy with Bernie.
 

Johnny956

Member
Oct 25, 2017
354
I mean how many people who have 401k's that are maxing them out? Seems like this would only benefit the wealthy because even those who don't have access to a 401k at work still can use a traditional IRA so this would benefit those somewhat as the 6k max is much smaller then the 19.5k for a 401k