Question by dolphin314etc: If the Tax Issue is Not Resolved by 31 December 2010 will the Stock Market Crash?
Right now, and till the end of this year people are paying 15% on their Capital Gains.
If there is no resolution on the tax issue, the Pre Bush Tax Rates will come back as on 1 January 2011, and this means some people will pay 20% or 25% or more on their Capital Gains.
So, some people may decide the get out while the rate is 15%, and not wait until next year when it may be higher.
They can re-buy the same stocks in Feb of 2011 (30 days wait — under the Wash Sale Rule). If they re-buy they get a new basis, so going forward they are OK.
The only issue for them is to pay 15% or some Higher%.
If and when all of these wealthy people get out of the stock markets, they probably would all do it on the same day. The “Market” only has one brain, not many.
That would be a crash, even if it tripped the circuit breakers, and happened over two or three days instead of just one.
Is playing funny games with the tax issue a funny and good idea for the millionaires and billionaires?
Does brinksmanship serve their true self-interests?
Or are they trusting the GOP which is so misguided that it is stepping on their collective cranks?
Are Mitch and John playing a dangerous game with the assets of the Big Money people?
[The truly poor don't give a cr*p what happens to the stock market, and most wage slaves are only in the market through their 401 K's and Roth IRA's, so tax rates in the future don't matter to them since they won't have to pay any taxes on that retirement money -- 15% -- 25% -- no diff, see? It's the rich that will take it in the shorts if the market crashes, Doh!]
Best answer:
Answer by Aw Shut The Heck Up
No those guys will be heavily invested overseas by then
No only Joe Sixpack looking for a job will be affected
What do you think? Answer below!
