anybody. i think he is the weakest mentally. this is a guy who does everything to separate and frighten people. he looks different than he used to. he acts different than he used to. he is even slower than he used to be. four years of donald trump will be viewed as aberration. eight years will fundamentally change who we are as a nation. it looks like his friends from the left are going to overtake him pretty soon. i believe that the president is literally an existential threat to america. when he mentions my name that many times i guess i should be complimented. bret: president trump on the south lawn, former vice president biden in iowa. he will be speaking in iowa in just a little while. if you look at the race there real clear average politics of polls has it joe biden at 23.8. up about 5 points over bernie sanders, you see mayor pete there in third. elizabeth warren she polls better in a recent poll in
america s wealthiest taxpayers could be in for another break. the treasury department is considering a change to the capital gains tax that would result in a $100 billion tax cut for the wealthy according to reports today in the new york times, the washington post and the wall street journal. let s take a closer look. first, what are capital gains? the profit from the sale of property or another type of investment such as stock. the federal government currently taxes the difference between the purchase price and the sale price of an asset. obviously you re not going to pay tax on your initial investment or the cost, but the difference between the cost and selling price is taxed at a rate of 23.8%. that s capital gains. here s an example. if you invested a million dollars in an asset in 1990 and sold it for $3 million this year, you d owe taxes on the $2 million difference, your tax bill would be $476,000. but the treasure ary department is considering changes the
works. capital gains are profit from sale of property or stocks. currently, we tax capital gains by the difference between the purchase price and sale price of an asset. the sale price is called cost. and current rules allow for investors to recoup that sales price, the cost. the cost is taxed at a rate of 23.8%. if you invested a cost of a million bucks in 1990 and sold that asset for $3 million this year, you would only owe the tax on the difference. that s $2 million. your tax bill would be $476,000. well, the treasury department could change the definition of cost when calculating the capital gains. allowing for investors to account for inflation when determining their tax liability. the same investment of a million bucks in 1990 would now have a cost of about $2 million in today s inflation adjusted dollars. that means the investor would only owe half as much, $255,000
fast forward to now. a private equity fund makes money usually in the millions. a big chunk of that money goes to the investor, like the old ship s captain, 20% goes back to the fund manager. that 20% is carried interest. the fund manager pays 23% tax, 23 23% 23.8%, capital gain tax and 3.8 invest tax. how it should be according to those who view fund managers as entrepreneurs. the idea, entrepreneurs should reap rewards from selling something that they built. putting their capital at risk. others argue for closing the loophole saying 20% cut is actually income. like you would earn income. and i would earn income. that is taxed at a combined rate, being taxed the regular way of 43.4%. reezbling behind that, these managers tend to be extremely wealthy and paying that 23.8% means their taxes are lower than people who currently make
there ain t no hedgefund managers carrying anything. the fund makes money, usually in the millions, a big chunk going to the investor. but like the old ship captains, 20% goes back to the fund manager. that 20% is carried interest. the fund manager pays 23.8% tax on the money, a 20% capital gains tax and 3.8% investment tax. that s how it should be according to those who view fund managers as entrepreneurs. the idea is that entrepreneurs should reap rewards from selling somebody something they built. others argue for closing the loophole, saying 20% is without a doubt income. in that case, the money would be taxed at a combined 43.4% rate. the reasoning behind that, the managers tend to be extremely wealthy and paying the 23.8%