Where does 52% tax come from???

[mariodi]

I can't understand why people are saying 50% or 52% tax will be incurred on this investment. The highest ordinary tax rate is sitting at 35%...thanks to an administration that understands economics and effect of taxes on consumers. The Obama administration (which does not understand economics, has never worked a job in his life, and will put this country back into a recession once taxes increase) will let the tax cuts expire and go back up to 39.6%. That is the ordinary income rate and for investments shorter than 1 year. The capital gains tax is at 15% for investments held longer than a year, and could possibly be increased to 25% according to plans I have heard from Obama. Which, by the way is another genius move by a community organizer. How many 7th graders can probably get that right. How would taxing investments higher through an increase in capital gains spur economic growth. You cannot grow an economy when you take money out of private investments and give it to the government. The government has never produced one product, and therefore cannot add to the economy. Government is not all evil...they do a great job with military and defense, and they also have done well with the transportation infrastructure and national parks.

Sorry about the tangent...back to the point.

Even if you include state tax (which I am lucky I live in TX), this will be deducted form your federal tax.

Can someone fill in the blanks of how we add up to 50-52% tax? This just not add up.

Thanks and good luck to all. I hope here in the near future I have the problem of paying too much in taxes...that means my income would have increased just as much.

Mario

[Jigga]

regardless of how long you have held your dinar it will be considered short term gains and it falls under currency exchange tax...dont know the proper term for it but thats how its going down....its just supposed to be raised a little but it wouldnt take effect until 2012 or 2013....cant remember off the top of my head but regardless if it RV's soon we wont need to worry bout it.....

[paulmcdaniel]

This may be helpful. Of course, check with your tax professional, as I will be doing tommorrow.

Section 988 Election Procedures

A capital gains election applies on a transaction-by-transaction basis. In order to make the election with respect to a particular transaction, the taxpayer must clearly identify each Forex transaction on its books and records on the date it is entered into. While no specific language or account is necessary to identify the transaction, the method of identification must be consistently applied and must clearly identify the pertinent transaction as subject to the election. According to the IRS

Edited March 30, 2010 by paulmcdaniel
need to add one item

[ToddS]

See the following thread in this forum perhaps it will help, or use the "Advanced Search" button in the upper right hand corner of this page to search.

http://dinarvets.com/forums/forumdisplay.php?22-Tax-Discussion

[Mr. Smith]

If you truely live in TX Mario i hope your ready for the Mexican-Canadian super highway that will be built in your back yard.

http://www.humanevents.com/article.php?id=15497

[ToddS]

If you truely live in TX Mario i hope your ready for the Mexican-Canadian super highway that will be built in your back yard.

http://www.humanevents.com/article.php?id=15497

Have you ever traveled I-35 through Kansas Mr. Smith? I think that is what they are attempting to build in Texas, my home state. I think this is a very interesting development and have been following it closely through some friends in the State Government of Texas, very interesting indeed. However things have changed dramatically since the article was written in 2006 in the link you provided.

Edited March 30, 2010 by ToddS

[Mr. Smith]

Have you ever traveled I-35 through Kansas Mr. Smith? I think that is what they are attempting to build in Texas, my home state. I think this is a very interesting development and have been following it closely through some friends in the State Government of Texas, very interesting indeed. However things have changed dramatically since the article was written in 2006 in the link you provided.

No i havent actually been out west in a long time, not since i visited arizona years ago. I currently reside in Ohio. yes, im sure plans for the highway have probably changed by now, but the North American Union is still a very real thing. Even though things like these get little to no attention in the media, i think its important to keep ours eyes open for conspicuous or under-the-table agreements that our government tries to slip past us. thanks for the enlightening response, hopefully we can discuss this more in chat sometime.

[whbiv]

I still don't see that anyone has answered the original question. Where does this 50% tax come from?

[Calculated00Money]

Read the healthcare bill they triedd sneaking it by will they distracted us, similar to a bait and switch.

hope it help's

[truckdriver]

As a truck owner I can say that gov put there hands in places where thay don"t need to Like my money

[gross0612]

Recearch the alternative minimum TAX it ADJUSTS Long Term Capital Gains to a 26-28% taxe rate for starters