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Capital Gains Taxes

Charles3662 Wrote: Oct 03, 2012 12:28 AM
I am beginning to think that the whole purpose of modern governments is to extract income. There should be rightfully NO tax on capital gains. If I own a painting for 10 years and it is a genuine piece of art, why does the government or society at large have any right to any portion of the gain. I have a lot of stuff that through inflation has gained in value. Does anybody else have a right to any portion of the gain. I have an old truck that has according to blue book values long ago exceeded its economic life, if I sell it today does the government have any right to any of the proceeds. Capital gains and losses should be private, personal business and not creatively defined to give tax revenues. Capital gains taxes are stealing.
Charles3662 Wrote: Oct 03, 2012 12:35 AM
The whole purpose of taxing citizens is to run a government not redistribution of wealth. Defining and redefining capital gains and losses is a simple form of fraud that gets less attention because it involves investment. But if I invest in education and you invest in gold are they equal investments, should they be taxed the same or can I invest in education or gold. Most old men have invested in a couple of really good pairs of black shoes, are they subject to capital gains? If not why not--because they aren't usually sold. Investing in home ownership on the other hand could or could not be hit with capital gains taxes.
RHSimard Wrote: Oct 03, 2012 12:51 AM
You are correct. Your point about taxes strictly to fund the needed operations of a minimal government was well understood in our country's infancy, not necessarily by everyone, but by enough.

We're the way we are now because of a mixture of do-goodism by some politicians trying to sooth people's pains and the more craven temptation to sell goodies to people in exchange for their admiration - and votes, which describes today's political Left.

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...