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[QUOTE=detbuch;889131]If there are loop holes, if they are not "targeted" to help create a more productive outcome, they should be eliminated. If capital gains is, ultimately, a scam and doesn't produce the desired investment, it shouldn't be tweaked, it should be eliminated and all gains should be considered income as earned.
QUOTE]
I agree with some of what you are saying, but it isn't really apples to oranges. It is about income and capital gains are a huge part of income for some people who have enormous amounts of money to invest. I am not sure what the answer is, but it basically equates to a tax shelter. For the guy making $50,000 working, they are limited in what they can put in an ira or 401k or roth. Are there limits on the amount of capital gains that are taxed at the 15%? I may be wrong, but it seems like the economy is driven by middle class people buying homes, cars etc. The very richest people are still investing today and many businesses are typically sitting on more cash then ever. The problem is consumer confidence is low. Call it what you like, the middle class guy that gets most of his money from working gets taxed at a rate higher than the rate for alot of money the rich guy makes through stocks. I am not sure buying stocks necessarily helps the economy in the same way the middle class guys car, home, restaurant, and gift purchases do.
If there are loop holes, if they are not "targeted" to help create a more productive outcome, they should be eliminated. If capital gains is, ultimately, a scam and doesn't produce the desired investment, it shouldn't be tweaked, it should be eliminated and all gains should be considered income as earned.
QUOTE]
I agree with some of what you are saying, but it isn't really apples to oranges. It is about income and capital gains are a huge part of income for some people who have enormous amounts of money to invest. I am not sure what the answer is, but it basically equates to a tax shelter. For the guy making $50,000 working, they are limited in what they can put in an ira or 401k or roth. Are there limits on the amount of capital gains that are taxed at the 15%? I may be wrong, but it seems like the economy is driven by middle class people buying homes, cars etc. The very richest people are still investing today and many businesses are typically sitting on more cash then ever. The problem is consumer confidence is low. Call it what you like, the middle class guy that gets most of his money from working gets taxed at a rate higher than the rate for alot of money the rich guy makes through stocks. I am not sure buying stocks necessarily helps the economy in the same way the middle class guys car, home, restaurant, and gift purchases do.
I don't favor a capital gains at different rates than any other special taxes at different rates. I like the flat tax on everything. Probably won't happen. The current tax code is ridiculous. I also don't like a flat tax that has different brackets. I think eliminating people from the burden of paying taxes is wrong. If the pain of paying taxes at an equal rate is shared by all, the government is less likely to waste or spend "irresponsibly" or suffer the wrath of everybody rather than play phony games of divide and conquer.
That said, as of now, capital gains tax at lower rates is a different tax than income, or other types of tax. And the rich do pay higher capital gains tax than the rest of us. Those of us who fall in the 10% to 15% tax bracket pay no capital gains on anything we sell of value. Supposedly, as I said, giving a tax break of a rate less than that of income tax, is an incentive to invest. Maybe that is bogus. Maybe those who have "income" solely from investments would do so even at higher rates up to the 39% rate on income. Investments are often risky. A lot of money is lost on bad investments. As long as you have a job, the income is not at risk. Many who have both earned income and investment "income" might not want to risk as much on investment. Investment in new business might be hurt the most, and it is new business that is most needed. Some few who are good at it make obscene profits by investing. The amount of money that the government would realize by equalizing capital gains rates to that of income tax rates, if investment remained the same, is not huge. And if needed investment went down, revenue might drop a bit. If wealth is spent rather than invested it is it is transferred once into the economy.
I don't know if it all really works this way. I understand the bad feeling of those who see some rich folks paying a lesser rate of tax. I do see the mess of a tax system that creates jealousy and animosity between us. I do see us divided.
I understand the bad feeling of those who see some rich folks paying a lesser rate of tax. I do see the mess of a tax system that creates jealousy and animosity between us. I do see us divided.
Another promise broken. Divide and try to conquer is what's happening now
for the sake of an election a year + a way. It's only getting worse.
For the sake of the country I'd like to see Obama take what's left of his term,
and as a true leader bring us back to a united nation. That would take a
selfless man who truly wants to put his country first and serve the American
people. Swell chance.
For the sake of the country I'd like to see Obama take what's left of his term,
and as a true leader bring us back to a united nation. That would take a
selfless man who truly wants to put his country first and serve the American
people. Swell chance.
It'd also take completely dissolving the House and Senate, enacting term limits, putting limits on PACs and strict regulation on lobbying.
Our political system is broken from top to bottom and it's not because Obama hasn't delivered on most of his campaign promises and is a crappy domestic leader. This isn't something that just "popped up" in the last 3 years.
It'd also take completely dissolving the House and Senate, enacting term limits, putting limits on PACs and strict regulation on lobbying.
Our political system is broken from top to bottom and it's not because Obama hasn't delivered on most of his campaign promises and is a crappy domestic leader. This isn't something that just "popped up" in the last 3 years.
Debateable about his campaign promises and wether or not he's a
crappy leader.
However, the man has had 3 years, 2 of which he had control of the House
and Senate and did nothing to bring people together.
He imediately went to his own agenda of rushing HC, when the majority of the
country were against it.Same with the rush to the stimulus, and nice try to
rush for his secret jobs plan.
He started his campaign a few months ago, and I doubt he has the time
to actually do his job. He, his agenda and fund raising are the only things he has time for.
If there are loop holes, if they are not "targeted" to help create a more productive outcome, they should be eliminated. If capital gains is, ultimately, a scam and doesn't produce the desired investment, it shouldn't be tweaked, it should be eliminated and all gains should be considered income as earned.
QUOTE]
I agree with some of what you are saying, but it isn't really apples to oranges. It is about income and capital gains are a huge part of income for some people who have enormous amounts of money to invest. I am not sure what the answer is, but it basically equates to a tax shelter. For the guy making $50,000 working, they are limited in what they can put in an ira or 401k or roth. Are there limits on the amount of capital gains that are taxed at the 15%? I may be wrong, but it seems like the economy is driven by middle class people buying homes, cars etc. The very richest people are still investing today and many businesses are typically sitting on more cash then ever. The problem is consumer confidence is low. Call it what you like, the middle class guy that gets most of his money from working gets taxed at a rate higher than the rate for alot of money the rich guy makes through stocks. I am not sure buying stocks necessarily helps the economy in the same way the middle class guys car, home, restaurant, and gift purchases do.
A guy works hard to earn an income, pays some % in taxes then puts his money at risk by loaning it to a business so they can grow. If the business grows, he makes some money, if not he loses it. He has already been taxed on the initial investment, by taxing him at a higher rate on the profits from his loan, you reduce the amount of money available to grow other businesses he may make a loan to.. In my eyes helping companies grow through loaning them money is at least as powerful as growth through consumption, but a business can't grow without some level of both.
“It’s not up to the courts to invent new minorities that get special protections,” Antonin Scalia
A guy works hard to earn an income, pays some % in taxes then puts his money at risk by loaning it to a business so they can grow. If the business grows, he makes some money, if not he loses it. He has already been taxed on the initial investment, by taxing him at a higher rate on the profits from his loan, you reduce the amount of money available to grow other businesses he may make a loan to.. In my eyes helping companies grow through loaning them money is at least as powerful as growth through consumption, but a business can't grow without some level of both.
Well put.
Politicans are well aware of the jealousy factor and love to use it to
try to make points by making it sound like, "its just not fair" with out
reminding people of the risks that are taken, and the good effects the
market has on the economy and jobs.
Hybrid Mode
