In response to:

Capital Gains Taxes

agtmarkr Wrote: Oct 03, 2012 11:21 AM
The way capital gains are calculated... for tax purposes... they are largely a TAX ON INFLATION. Not only does a successful investment appreciate over time... but the value of the money in which it is calculated has diminished. "Fairness" would require a capital gain to be indexed to the CPI. Urban blight is also a result of the tax on capital gains. Landlords become frozen into income property investments... lest a significant share of their sale proceeds be taxed away. Often they wait till they die, so their heirs can benefit by the readjustment of the tax basis on the death of the owner. Imagine what that does to the physical condition of the property.
FlamingLiberalMultiCulturalist Wrote: Oct 03, 2012 11:29 AM
Isn't every wage-earner similiarly hit by inflation?
Doug5049 Wrote: Oct 03, 2012 11:33 AM
No, those with their budgets stretch the tightest are the ones hardest hit.
DB07 Wrote: Oct 03, 2012 11:34 AM
"Isn't every wage-earner similiarly hit by inflation?"
Yep, which was a major reason our income tax was flattened under Reagan, so that people weren't inflated into higher tax brackets.
wmou Wrote: Oct 03, 2012 11:50 AM
Depends on where their money is invested.
While interest rates are low, I'm buying durable goods as a hedge against inflation.
I'm not going to let my money sit and earn interest which is less than inflation.
magnetar Wrote: Oct 03, 2012 12:23 PM
best thing you can do is borrow as much as you can float, use it to buy reqal assets like land, farm or housing so when these idiots collapse the dollar you can pay off the loans with inflated currency

One of the many false talking points of the Obama administration is that a rich man like Warren Buffett should not be paying a lower tax rate than his secretary. But anyone whose earnings come from capital gains usually pays a lower tax rate.

How are capital gains different from ordinary income?

Ordinary income is usually guaranteed. If you work a certain amount of time, you are legally entitled to the pay that you were offered when you took the job. Capital gains involve risk. They are not guaranteed. You can invest your money and lose it all. Moreover, the year...