Quote:
Originally Posted by justplugit
I see your point.
I believe the incentive of the capital gains tax code at a lower rate was to give
incentive to invest long term in our capitalistic system.
Short term gains are taxable a much higher rate as the $$ aren't staying to help growth. Just my simplistic way of looking at it.
Your right, every business is a risk and toget investors $$$ there has to be
incentive for return.
If your labor produces $100 it is taxed at $25. Tax #1. Take the $75 left
and invest it and your taxed again on any gains at 15%. Tax#2.
However you look at it,the Govt. wins twice on your Labor/ Investment.  |
I know what you are saying and I think about it at tax time too. However, based on the way the system works, for a small percentage of the country who are extremely rich, the way they make money for themselves is investments. If Gingrich gets his way, the capital gains taxes will be gone and those guys will make millions of dollars off investments and pay no taxes on it. But a plumber or contractor will pay taxes on their income from a risky business adventure that is arguably at least as valuable to our country and the economy. Doesn't come it in the wash as far as I am concerned.