Should be taxed at the same rate as other income. This is how the established elite maintain the status quo.
Hey, my retirement hinges on low captail gains tax rate. This is a dumb idea that would hurt a lot of retirees like me.
I’m not a CPA, but I’m pretty sure you don’t pay capital gains tax rates on your retirement account. When you take money out of your IRA or 401k it is taxed as normal income.
Capital gains and dividend taxes only effect *non retirement* investments.
The reason that low capital gains taxes are so unfair is because those who benefit most from the low rates are the extremely wealthy (think Warren Buffet) who make all their income in capital gains.
Uh yeah, sure, if you want to kill investments then go ahead and raise it. You people really don’t understand anything.
Agreed Sequimwhim. They really don’t understand basis economic principles. Most of my investments were made with after-tax money. The gains I make on that money should be tax free since I paid taxes on the funds I invested. Also, the businesses in which I invest pay taxes that reduce the net income available to investors. So, capital gains should be tax free. Now, carried interest should be taxed. But not capital gains.
“Most of my investments were made with after-tax money. The gains I make on that money should be tax free since I paid taxes on the funds I invested.”
By that logic, if I buy a business with after-tax money, I should never have to pay corporate income tax, because my initial investment was made with after-tax money. That don’t fly…
Taxing capital gains as income is a no brainer: YES. DO IT.
The argument that it will kill investment is bunk… because frankly, what’t the alternative? Bonds? Taxed. Real Estate? Taxed. Savings account? Taxed. High-paying job? Taxed. Start your own business? Taxed.
All other ways to make money are taxed as well… so arguably, the current situation makes stock investment ARTIFICIALLY better. It should be taxed the same as anything else: as income.
I agree. Why does “OS” want to give more $$ to the gov’t? Oh so they can feel like all is fair! And they can continue to have their “town”. BTW the stock market is UP this am YIPPEE!
Multi-millionaires like Mitt Romney pay about 14% of their income as tax… that’s about HALF the rate of everybody else. Mainly because capital gains are taxed at a lower rate. If they were taxed like normal income, their tax rate would be the same as everybody else.
Its too bad that because someone has a difference of opinion that the common and immediate response is that obviously they don’t know what they are talking about. I would hope that we could instead attack the many problems that we all share in common, rather than each other.
As to capital gains, and if it makes it easier for you to not strike out at me next, (my day job is as a senior level finance & economics analyst at a fortune 50 company), capital gains are just a fancy name for income derived from investments. Starting in the roaring 1920′s, this income was given preferential treatment with the aim of incentivizing long term capital investment in our adolescent economy. And for the most part it worked.
The issue here is that now our economy has matured much over the last 100 years. Most of us and perhaps nearly all of those in the 99% either have or will at some point in their lives, benefit from this “special tax class” when they sold their house and it had equity built into it. The vast majority of capital investment today is in nascent markets abroad, many of them in the same stage of development as we were in 1920. Also most of these investors are big money; bigger than most can imagine. Investments, and the enormous returns these folks make because of their vast wealth, are their only source of income. Essentially they are adept at taking easy off the top of the value creation derived from factories where sometimes child laborers, often forcibly, toil for 16 hours a day to make garments, or shoes, or any number of things that end up on the shelves at WalMart and the like.
So yes, I believe that most capital investment is not being made in the best interest of our country. Not only do I believe this, but I know its a fact! I would suggest that the world has changed much, and so has the conditions and challenges we face. I would only add that we could have our cake and eat it too if all capital gains over, let’s say $300k, we treated as normal income (39.6%), and those under $250k should have the tax lowered to say 10%. That way the gains that were truly intended to help the middle class, derived from buying and selling a house here and there, 401k’s, IRA’s, would get a tax reduction while the super rich who already have more money than they could possible spend in ten lifetimes finally begin to pay their fair share and are not being rewarded for growing economies outside of the US while taking advantage of all the issues that tend to thrive in impoverished places around the globe…
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