Stock Market Today With Jim Cramer: Taxes and Meme Stocks

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U.S. stocks reversed gains and were trading in the red Friday afternoon a day after the S&P 500 set a record. Investors assessed the Federal Reserve’s stance that inflation spikes will prove to be transitory.

Billionaires Should Pay Their Taxes, Cramer Says

It is in the best interest of the country for billionaires to stop avoiding paying taxes, Jim Cramer said Friday from the floor of the New York Stock Exchange. 

TheStreet.com’s founder noted that there’s a difference between tax avoidance, which is legal, and tax evasion, which is illegal.

Cramer wants the U.S. to look at its longstanding policy of encouraging tax avoidance at the highest earnings levels.

His comments come after ProPublica published a story based on a cache of 15 years of IRS records, which showed how little the country’s richest residents pay in taxes.

Tesla  (TSLA) – Get Report Chief Executive Elon Musk, for example, paid no federal income taxes in 2018 while Amazon  (AMZN) – Get Report CEO Jeff Bezos paid a less than 1% true tax rate on the more than $4 billion of income he reported between 2014 and 2018. 

Read More: Understanding Progressive, Regressive and Flat Taxes

Jim Cramer Defends Use of Term ‘Meme Stock’

The conversation around meme stocks can be toxic online and the question came up whether the media should retire the term in favor of a more neutral term like “momentum stock.”

Cramer is in favor of keeping the the phrase meme stock in order to distinguish normal trading action, where investors bet on companies they believe in, from meme stock trading, where Cramer says the objective is to punish short sellers.