Here's why a jump in capital gains taxes doesn't spell the end for stock market gains, according to

[Yo_Mama_Been_Loggin]

the world's largest wealth manager

Stocks can still thrive even if the US raises the capital gains tax, according to UBS Global Wealth Management.

A report by Bloomberg on Thursday saying President Joe Biden is considering proposing a near doubling in the capital gains tax rate ignited a selloff on stocks, knocking the Dow Jones Industrial Average down by about 320 points.

Biden is reportedly seeking a capital gains tax rate of 39.6% for Americans who earn more than $1 million. That rate would be added to the 3.8% tax on net investment income that's tied to Obamacare, which would bring the proposed tax rate to 43.4%. The current capital gains tax now stands at 20%.

-snip-

"While we can't rule out some additional modest equity market volatility as investors react to this proposal, we think it will be very short-lived," said Mark Haefele, chief investment officer at UBS Global Wealth Management, in the research note.

He said the last time capital gains taxes went up was in 2013 when they rose by nearly 9 percentage points.

"Yet stocks rose 30% that year. In addition, we find no correlation between capital gains tax rates and equity market valuations," said Haefele.

https://www.msn.com/en-us/money/markets/heres-why-a-jump-in-capital-gains-taxes-doesnt-spell-the-end-for-stock-market-gains-according-to-the-worlds-largest-wealth-manager/ar-BB1g235a

[WarGamer]

1. This is what I've been trying to tell people

There's no harm to this, UNLIKE Corporate Tax increases.

If you ride a golf cart in the morning and sell 100 option contracts for $1000 profit each...

YOU MUST PAY at least the same TAX as the plumber who work 50 hrs a week to make 100k a year. You should probably pay MORE than him.

NO Rich Person is going to say "Shit, I'm not going to play the market anymore because the taxes are higher..." they'll play TWICE as hard to compensate for the tax increase.

[ret5hd]

2. Like they're gonna just pull all their money out...

and stick it in the mattress.

Fuck ‘em.