The appreciation of the stock will exceed the interest on the borrowed money. If I borrow $100 on $100 of stock from a bank that charges me 4% interest a year for 5 years while my stock goes up 7%, at the end of all that I still made 20% on my money instead of paying 15% in tax on that money. I don't how you can say he's not benefiting immensely from this. Full disclosure, the tax laws on stocks are bunk. I cashed in my stock in a company, and paid 0% tax. And I didn't even have to do what the guy on the right did. There literally was no capital gain tax on a large capital gain. 15% bonus baby.
It might, it might not. Depends on how much the stock appreciates, if at all. If you just borrow money to buy stock and the stock appreciates enough, you can outpace the interest on the loan. That has nothing to do with the tax system, it has to do with finding investments that generate more benefit than the cost of investing. If you borrow $100 on $100 of stock from a bank that charges you 4% interest a year for 5 years while your stock goes down 2%, at the end of all that you lost money on the stock and paid interest on money that could have just been yours outright. Because, as I pointed out, it is situational. Good for you, I guess. There are ways in which you can end up paying more that if you were just paid in cash. For example, if you were given $1M in stock instead of a $1M salary, you would have to pay income tax on that $1M. Then if you borrowed against that stock, you would have to pay interest on the loan. Then if your stock didn't appreciate, you could cash it out for no additional taxes and pay off the principal on the loan, but you are down the interest paid on the loan for no real benefit.
please do Harris/Walz can then tie their policies to the lowering of drug prices the many high-paying new jobs created by the CHIP act, infrastructure bill, etc. the soft-landing, https://finance.yahoo.com/news/latest-economic-data-cools-recession-worries-141217185.html created > 14 million jobs inflation dropped from a 40-yr night of just below 9% to the current just under 3% GDP continues to grow every quarter since taking office
related Harris to Lay Out Economic Message Focused on High Cost of Living The vice president’s plans represent more of a reboot of President Biden’s economic policies than a radically fresh start. https://www.nytimes.com/2024/08/16/us/politics/kamala-harris-economy.html excerpt: Ms. Harris’s proposals for her first 100 days in the White House include efforts to combat price gouging at the grocery store, jump-start the construction of more affordable housing, restore an expanded tax credit for parents and lower the cost of prescription drugs, according to a briefing document released by her campaign. She will call for a tax incentive to build starter homes, seek to cap the cost of insulin at $35 for all Americans and attempt to reduce the cost of health insurance through the Affordable Care Act. Taken together, her plan represents more of a reboot of President Biden’s economic policy than a radically fresh start — a new sales pitch focused on its most popular aspects, not a new vision. Many of the policies reiterate or build on proposals in Mr. Biden’s most recent presidential budget. Harris campaign officials released scattered details, leaving key questions unanswered — like the income cutoff for families to qualify for a new $6,000 child tax credit for newborns, or what exactly would qualify as grocery-store “price gouging” under a federal ban. Campaign officials did not detail how Ms. Harris would pay for her spending and tax-cut proposals in their release ahead of the speech. But they said her overall plan would reduce projected federal deficits, like Mr. Biden’s latest budget proposed to do, largely by “asking the wealthiest Americans and largest corporations to pay their fair share.” In terms of emphasis, her speech is expected to shift away from Mr. Biden’s focus on job creation, particularly in manufacturing, and more toward reining in the cost of living. more at the link
Martin Shkreli was a private citizen. He was forced to disgorge his profits and went to prison. If only we could send the government price fixers to prison as well. Let the free market work.
how did your company report this 15% to the IRS? was it included your W-2 form for the follwing year, the year in which you received the bonus ih the form of stocks? i believe what you had described is the Restricted Stock Units discussed in this link, https://www.thetaxadviser.com/newsl...-compensation-tax-forms-and-implications.html before Trump's tax cut, you'd be subject to the AMT treatment, but his tax cut eliminated AMT
Actually, I have called for the elimination of all subsides. You, once again, don't know what you are talking about. I am just as against handouts to businesses as I am against handouts to people. Let the free market be free. Wrong again, I said at the time I was in favor of free trade, and I still am.
Even NYT is skeptical of the admins effort to reduce grocery price and their shifting of blame on "gougers." Many biz tightened belts during covid and it stands to reason that they'd loosen belts when the goverment dumped checks on everyones heads. What should be looked into is how insurance companies are able to raise rates while claims are relatively lower. Buffet is having banner years from Geico Seems like a bandaid thrown to angry voters in order to make it look like Kamala and uhh Joe is "doing something" while hoping rainmaker Powell breaks inflation. Maybe I'm wrong with Kamala's policies and she'll introduce some crazy price gouging law rather than a flimsy EO or investigation committee.
