The stock market has rallied massively in just the past three days with high volume. The rapid increase in prices and high volume suggest this may the blow off stage of the second stock market bubble this century. It will interesting to see how high this bloated stock market rises in the months ahead. Earnings are already down more than 20 percent from the peak in year 2014 and yet stock market is poised to make new all time highs tomorrow! This is stupid time again on Wall Street!
Triple tax is more fair fhan double tax. This is my plan: tax unrealized gains by 20%, realized gains by 50% and 15% transaction tax. Say you have $10,000 to invest and you buy a stock your first tax would be a 15% transaction tax for $1500.00 with $8500.00 left to invest in that stock and it goes up 20 percent the first year and your $8500.00 increases in value to $10,200.00 with a $1700 unrealized gain taxed at 20% for $340.00 and the next year the stock goes up another 20% to $12240.00 with unrealized gains of $2040 taxed at 20 percent and then you sell the stock a month later and pay the 15 percent transaction tax. You still have $10,404.00 after taxes are paid which is way way better return than I have earned in interest on over 1 million in savings in early 8 years!
You can kiss goodbye low capital gains taxes in the not too distant future. Expect much much higher capital gains taxes and a transaction tax in the next administration. The speculators have been gifted a fantastic windfall in capital gains subsidized by the tax payer. It is all artificial however as revenue total has not increased by one cent, not even on measly cent since the peak in 3rd quarter 2008 yet stock prices are more than 40 percent higher. Is that rational? Hell no, this is just another bubble that is a consequence of awful misguided central bank foolishness like QE, negative rates and stick save over and over again. It is stupid time in the casino called the stock market. Grant says it is artificial and I agree.