packerdriver wrote: Reddeer, my friend! Why don't you just launch into the Gordon Gecko "Greed is GOOD" monologue!!!
In that 34 years of owning Telus you collected VERY good dividends that attracted a very favorable tax treatment. And now you want a better rate on your gap gains AS WELL??? Sheesh!
Capital gains taxes are DEFERRED taxation....all the while that the SP has gone up, increasing your net worth the taxman has stayed away. If like, like most investors, you turned your increased net worth on paper during that time into more financial opportunities you are way, WAY further ahead of the average Joe just working for a living. And all you did was sit on a piece of paper??? You want to pay tax at a much lower % rate than him??? Double Sheeesh!
1957 10k turns into 520,506??? That's a 5,205% !!! Not good enough? You want/expect government to use taxes to shield you from inflation? After that maybe it can do something about the weather, eh?Over 66 years that 10k has added 7,884 to your net worth every year....and you want a tax break???
510,506 gain = 255,253 taxable at 30% = 76,575....that's 15% tax on your gain. How is that "too high"?
Writing the cheque will be painful (even though you got half a million in cash)....but that's just a little over a thousand dollar a year. I don't follow.
I don't share for ONE SECOND your "estate" concerns....why the heck should I worry about taxes the day after I'm dead!!!! What a waste to concern myself with THAT while I'm alive!!! My only obligation to my heirs is to leave them at least as much money as I inherited....I have done that a few itmes over.
They have hands and feet...they can go and make their own money (on top of what I left them).
Your "estate" concerns reminds me of an old friend of mine who was very well off in retirement. He got that way in part because his wife was very smart with their money and frugal. Now retired they travelled a lot but the wife still spent like 40 years ago....always looking to save a few bucks....flying economy, budget hotels etc. My friend used to get annoyed at this because they could afford it ALL....and he used to keep telling her: "Louise, if we don't go FIRST CLASS....OUR KIDS WILL"!!!! LOL
Happy new year!!!
Red_Deer wrote: Hey PACKER__One LAST Kick at the CAPITAL GAINS Can !!!
IMHO It IS Quite APPROPRIATE to Have LESS TAX on GAINS vs SALARY Income
At LEAST For TRUE Long Term BUY & HOLD Investors Such as MYSELF.
The REASON is That MUCH of the SO CALLED ""GAIN"" is ACTUALLY JUST
the RESULT of YEARS of INFLATIONARY Increase__WHICH Keeps CUTTING
the ""Real ADJUSTED for InFlation GAIN"" That SHOULD BE TAXED
NOTE That in the USA There IS Recognition FOR Short Term VS Long TERM
Capital Gains__With a LESSOR RATE for Long Term Holdings
What REALLY Bugs me the MOST with regard to Capital Gain Taxation is that there is NO
RELIEF/CREDIT Provided for BUY & HOLD True Investors__Compared to the Short Term
Traders.
As Example__I Have Held TELUS ever Since the IPO, Fall of 1990, when AGT was Privatized
by the Alberta Government__So this October I will Have Had TELUS as one of my MAIN 2
Holdings for 34 YEARS !!!!
Thus over that LONG Time period there HAS Accumulated a LARGE Capital Gain__Basically
Made UP For INFLATION and Time Value of $$.
So I Strongly Believe that It is TOTALLY UNFAIR for My Estate to Have to PAY a HUGE TAX
on the GAINS over Say 55 YEARS by Then__Compared to Short Term Traders
There Has GOTTA BE Some Sort of TAX Relief/Credit on Capital Gains over Such a LONG
Period__As MUCH of that Gain is Simply INFLATION and NOT ACTUAL REAL Gains !!!!
How BAD/UNFAIR is the Capital Gains Taxation of Long Term BUY & HOLDers ??????
THIS is HOW BAD it Can BE__We Currently Would Pay 10 Times MORE Taxes OVER What the Actual REAL GAINs were in this Exanmple__The LONGER the HOLD PERIOD the WORST it Gets eh !!!!!
Understanding inflation’s impact would help investors see how closely their nominal returns are keeping pace with purchasing power, especially over an extended period when a modestly lower yield can produce a huge difference in principal. Since 1957 the Standard & Poor’s index has gained 10.26 per cent a year. After inflation, however, its return has been 6.37 per cent. That makes a huge difference. An initial investment of $10,000 in 1957 would have grown to an impressive $5,185,000 in nominal terms by 2023. But in real (i.e., inflation-adjusted) terms, it would be only $520,506 — not bad, but barely 10 per cent the inflation-swollen amount.