In response to:

Capital Gains Taxes

trailbee Wrote: Oct 03, 2012 11:42 AM
Thank you! Thank you! What a great way to explain/teach Taxation 101. That Buffett/Secretary stunt was one of the biggest hoaxes thought up by the current administration! Our country is so dumbed down people believed that crock!
DagNabbit Wrote: Oct 03, 2012 12:20 PM
Ronald Reagan Fan Wrote: Oct 03, 2012 1:52 PM
look whose talking. you calling someone an idiot is like Joe Biden calling someone stupid.

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...