Fake Money, Fake Capital OUZILLY, France – Little change in the markets on Monday. We are in the middle of vacation season. Who wants to think too much about the stock market? Not us! Yesterday, Republican presidential candidate Donald Trump promised to reform the U. S. tax system.
This should actually even appeal to supporters of Bernie Sanders: the lowest income groups will be completely exempt from income and capital gains taxes under Trump’s plan. We expect to hear crickets from the socialists though. Oh, and below you will see why Trump only got $19,000 from hedge funds, while Hillary ‘we came, we saw, he died’ Clinton got $48.5 million (crickets from assorted socialists so far). But who cares, Trump is Hitler, right?
His proposals are nothing new – simplification, fewer brackets, eliminate loopholes for rich people. But he also targeted the ‘carried interest’ exemption. ‘Carried interest’ – or ‘carry’ – is a term used in the financial industry to refer to what is essentially a performance bonus.
The exemption allows Wall Street money managers to count earnings as capital gains. This helps them keep more money in their pockets (capital gains are taxed at a rate of 23.8%. Labor income is taxed at a rate of 39.6%).
This post was published at Acting-Man on August 11, 2016.