Posted on Dec 14, 2016
The millionaires and billionaires in Trump’s cabinet will get an exclusive tax benefit
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The rule allows members of the executive branch to sell off assets tax-free and then reinvest that money in low-risk assets like government bonds and mutual funds. Administration officials will have to pay the 15 percent capital gains tax whenever they sell their low-risk assets — the tax is only deferred — but the benefit comes from turning high-risk assets into low-risk assets, tax-free.
Yes, he may be getting the "best and the brightest" but as this shows, they are gaming a system where only they will benefit.
Yes, he may be getting the "best and the brightest" but as this shows, they are gaming a system where only they will benefit.
The millionaires and billionaires in Trump’s cabinet will get an exclusive tax benefit
Posted from news.vice.com
Taxes
Donald Trump
Wealth
Posted 8 y ago
Responses: 4
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Our government and the system hasn't been one for the every day average American for a very long time. Government service is no longer one of patriotic service but one of self interest benefits and profit; whether state or federal positions. No different than the legal and medical professions that became a for-profit industry and not a service to society. Both political parties are responsible for implementing provisions that benefit members of the parties and dare to call it "sacrifice of becoming a public figure".
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The academic who wrote this article is an IDIOT. For starters the law has been in place for 27 years, and it is written as if Trump's people will somehow get a benefit that no other cabinet officials ever got. The author doesn't even touch on the laws that allow members of Congress to legally benefit from insider trading, which is how people liike Nancy Pelosi and Harry Reid became multi millionaires on a 174k per year salary. The worst part of the article is when the tax professor tells us readers that these super accomplished business people will sell off their risky stock portfolio's for the advantage of buying gov bonds. I wonder if that moron bothered to Google the words "bond Default rate predictions" or something similar. The entire financial news media has been warning of bond defaults starting in 2017, only someone who knows nothing about money would be rushing into the tax benefits of losing all their money in bonds. Thankfully the wealthy people that Trump is picking are far smarter than the tax professor who wrote the article.
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They are not "gaming the system". They are following the law as it is written for cabinet appointments. He (and others) should not have to take a financial bath to serve in office. Since he likely owns a lot of stock and other investments, how much of a penalty should he have to pay? I say it is a good way to get the conflict out of they way for everyone. You would be the first to complain if he had any conflict by holding on to the investments that could sway his policy wouldn't you?
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Cpl Joshua Caldwell
If you don't follow the tax laws for you own benefit then you are a MORON. The wealthy people who Trump is choosing are not morons. That is a good thing.
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Cpl Jeff N.
SP5 Christine Conley - You must not understand how taxes on investments work. If the investments were tax deferred investments then he will pay the taxes when they are withdrawn (just like the rest of us).
If the investments were after tax and stock type investments (depending on the type) he will pay capital gains on the investment earnings (as he likely already paid taxes on the value of the stock).
Lot's of executives get stock grants (I have them so I am familiar with how they work). The grant is given to you at the value of the stock price at the time of issuance. It is tax deferred until the grant matures (usually a few years). When the grant matures, it goes 100% to you (vests) and you pay taxes on it then at the current rate. After that, you only pay taxez on the earnings above the value you paid already when it vested. A simplified explanation.
If the investments were after tax and stock type investments (depending on the type) he will pay capital gains on the investment earnings (as he likely already paid taxes on the value of the stock).
Lot's of executives get stock grants (I have them so I am familiar with how they work). The grant is given to you at the value of the stock price at the time of issuance. It is tax deferred until the grant matures (usually a few years). When the grant matures, it goes 100% to you (vests) and you pay taxes on it then at the current rate. After that, you only pay taxez on the earnings above the value you paid already when it vested. A simplified explanation.
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Cpl Jeff N.
SP5 Christine Conley - Honestly Christine, are you having a hard time following this post? The story is about how cabinet appointments, in this case Rex Tillerson, get tax deferments for moving investments around to avoid conflicts. It has zero to do with Trump, his investments, his tax returns etc.
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