Very good video overall, except I don’t think he made it clear initially that there’s a primary residence exception on capital gains tax, so people might be confused that this tax will affect them when it won’t. Similarly, the 1¼ million lifetime small business sale exemption should have been introduced earlier, imho.
Like, the example could have been a $2.6 million small business sale instead, then it would actually compare the old $1 million exemption with the new $1.25 exemption, and the old 50% incision rate with the new 50->66% inclusion rate to get a more accurate “apples-to-apples” comparison.
Napkin math:
Old capital gains tax: about 1 million is exempt, so paying 50% capital gains on remaining 1.6 million is 800K income, at 53% is about 424K tax.
New capital gains tax: 1.25M is exempt, so include 50% capital gains on next 250K, then 66% on the remaining 1.1M. Total capital gains income is 851K. 53% tax on 851K is only $27K more, for $452K, which is a 6.6% increase.
Vs. getting increased services over your entire lifetime from the ultra wealthy paying closer to their fair share? Even a small business owner selling a $2.6MM business comes out way ahead.
Also, do we really want to give doctors a pass for incorporating to shelter their income against income tax for their entire lives then say that’s a problem when they’re asked to pay closer to their actual fair share income tax when they retire? Really?
And we’re worried about people selling their multimillion dollar vacation properties paying more tax?
Anyway, I get the video is trying to be “balanced”, and it’s close, but it’s still biased toward the ultra wealthy.