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Capital Gains Taxes

Charles3662 Wrote: Oct 03, 2012 8:36 AM
"Fair Tax" is another one of those trigger terms like "trickle down theory." As I recall there used to be a host of trigger terms starting with the "N" word used to obliterate some reasonable fact or circumstance. The terminology worked. Same communication problem, new day! Honest communication is hard to find! Probably has hard to find as a true "fair tax."

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...