If I could get a $10k tax deduction by buying index funds/ETFs that sounds... too good to be true.
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White House considering ways to incentivize U.S. households to invest in the stock market.
- Thread starter Sectorseven
- Start date
If I could get a $10k tax deduction by buying index funds/ETFs that sounds... too good to be true.
What if it's only a deduction on Trump Approved Stock Picks..
This seems generous but it's about inflating stock prices and the averages.
To make the president look good.
That's all he cares about.
To make the president look good.
That's all he cares about.
More like a savings of 1k for buying 10k in stock with ties to leaving it for a period of time or paying taxes as a penalty for early withdrawal.
Yeah exactly. If you have enough money to put into a savings account, as in one you actually don't intend on touching for years, you have enough to invest in index funds/ETFs and this would definitely help. I'm sure there are some caveats involved, but it's crazy people still think stocks are super risky. Yeah, if the entire market collapses right when you're retiring you're screwed at the time, but it's almost sure to bounce back.
Yeah I'm sort of confused, I make decent money and can already invest a certain fraction of my paycheck into my 401k that taxes aren't taken out of (yet).
This would probably marginally increase upward momentum for those on the bubble of the upper middle class, households pulling in 50k/year aren't avoiding the stock market because of taxes.
This isn't a bad thing necessarily. Investing is a straightforward and easy to way to build wealth and literally anyone with a smartphone and $100 can do it. Just put your money into an index fund and come back in 5 years to see it quadruple.
It's definitely corporate socialism, but at least in this case there's something in it for the middle/working class too
Although this is essentially an alternative 401k/IRA system right?
It's definitely corporate socialism, but at least in this case there's something in it for the middle/working class too
Although this is essentially an alternative 401k/IRA system right?
I also don't know why this needs to exist when 401ks and IRAs exist. Just increase the limits on those if you think that would help anything?
"Gambling"
Dow Jones - DJIA - 100 Year Historical Chart
Interactive chart of the Dow Jones Industrial Average (DJIA) stock market index for the last 100 years. Historical data is inflation-adjusted using the headline CPI and each data point represents the month-end closing value. The current month is updated on an hourly basis with today's latest value.www.macrotrends.net
Funny no one ever brings up the Nikkei in these kinds of threads.
I don't have access to a 401k because I'm a government employee, and the 403b that we can get has no incentives attached to it. If I can continue to get tax incentives by taking my money elsewhere while having complete control over it, why not?
Food can be free if we work in cooperation to make it happen. It sure beats wage slavery.
Cool, so decreasing tax revenue so people with disposable incomes can invest tax free. Yay for those making enough money to invest.
Pretty much this is good for people already with money, but bad for our infrastructure and anything in the govt that relies on tax income.
Pretty much this is good for people already with money, but bad for our infrastructure and anything in the govt that relies on tax income.
Probably because if I had to guess this is a mostly American board, mostly knowledgeable about American stock exchanges in a thread about potential American investors. It's not that funny
We all know how its going to be paid for... either not at all just like the tax bill, or by cutting infrastructure of spending on social programs
A lot of us already invest our retirement. That's always fun when the stock market tanks... What could go wrong?
The amount of people here considering investing as "gambling" or "going to the casino" is deeply troubling. It's one thing if you don't have the available funds to invest, but if you're able to contribute to 401k and aren't, then well you have no one to blame but yourself when you're having difficulty with retirement.
Just because you don't understand a thing doesn't mean you have to demonize it. At least research what a friggin' index fund is.
Just because you don't understand a thing doesn't mean you have to demonize it. At least research what a friggin' index fund is.
This won't help the majority of Americans since most Americans don't have free money to use for investing.
Let's make a big bubble motherfuckers. "How can we force the market to rise, pumping up the 1% even further?"
Also an excuse for them to kill Social Security. Fuck off.
Also an excuse for them to kill Social Security. Fuck off.
I've got lots of money in the market. It's still gambling. You're gambling that it will continue to go up over the long term.
I'll demonize the stock market as someone that uses it extensively. It is not available to the majority of Americans. This administration acting like this is the way to go vs. raising wages tells you exactly who they're targeting here.
The proposal mentioned is specifically about investments made outside of 401ks.
Yea, tbh I would love an incentive to invest more, but 1) coming from Trump this is a blatant attempt to inflate the stock market to make his administration look better and 2) This proposal probably opens up a fuck-ton of loopholes for rich people to take even MORE advantage of the system for financial gain.
I don't trust this administration at fucking all
And I have a pretty reasonable Roth IRA going, too. I just don't want Trump adding more loopholes to the system.
Earth. We have a long history of eating for free here.
I don't want to derail this thread by answering the obvious, so if anyone else has questions feel free to PM.
What's the point of this? There are already ways for people to invest that are tax free and that is through IRAs and other retirement funds. This only helps the people who already have money invested in the stock market and gives them additional tax break. Those who are living paycheck to paycheck aren't going to be using this if they can't even put money into their retirement accounts.
So stupid.
So stupid.
Also looks like a desperate attempt to delay any possible (probable?) market correction till after the election.
Sounds fairly similar to existing tax exempt investments, like 401ks, but potentially with fewer restrictions. I'm wondering what sort of penalties there may be for "investing" and immediately cashing out. How will the government even track such activity?
The bigger problem is that a lot of Americans don't exactly have $10k available to invest in a year. Combined with the income cap at $200k, there's a pretty narrow band of people who can take advantage of this. Kind of just feels like throwing crumbs to (some of) the middle class, but I imagine it will play well to the temporarily embarrassed millionaires that are the Republican base.
The bigger problem is that a lot of Americans don't exactly have $10k available to invest in a year. Combined with the income cap at $200k, there's a pretty narrow band of people who can take advantage of this. Kind of just feels like throwing crumbs to (some of) the middle class, but I imagine it will play well to the temporarily embarrassed millionaires that are the Republican base.
The same way they do now? You have to report all sales and dividends when you file your taxes. All they have to change for this is to make you report your purchases as well.
If you can afford to invest outside of retirement, why should you get a tax break on those investments? And who are the majority of people who invest that can afford to invest outside retirement accounts? Those who already have a lot of money.
Full disclosure: I can actually afford to invest in stocks right now and this would benefit me, but what's the point of that? What about those who are poor and can't afford to invest even in their retirement accounts? Instead of helping those who are well to do, help those who are being left behind.
The way some of you demonize "safe" investing (401ks, index funds, ETFs, etc) makes you sound not too different from anti-vaxxers
What does this have to do with anything? You act like these incentives are at the cost of other measures to help the poor, as if they're some zero sum game. If these weren't here the money wouldn't be going towards social safety nets, or medicare or raising the minimum wage. It's like you guys saw the article about 44% of Americans being one paycheck away from having to dip into savings or being in trouble and mentally rounded that up to 99%
I guess this makes sense as long as you can prove you had a "net buy" in terms of overall investment. Assuming we would be required to report stock purchases to the IRS, as you say.
More investing is good.
This should be revisited after the market corrects itself so that people aren't gambling away money they don't have or artificially propping up firms to facilitate further inequality/corporatocracy.
This should be revisited after the market corrects itself so that people aren't gambling away money they don't have or artificially propping up firms to facilitate further inequality/corporatocracy.
Invest so people with money can sell of before the crash, then buy up socks and property after the crash
These incentives do have costs. If the government takes in less money, they give less money to safety nets in society. That's the entire Republican playbook. Why do you think they want to cut food stamps and other programs after they gave massive tax breaks to the rich? The government is not taking enough money in through taxes and is running big deficits, cutting money to programs, and doing other things that hurt the poor to make up for it. Are we still going to try to argue that giving tax breaks to the people who already invest in the stock market will not affect the poor?