In response to:

Capital Gains Taxes

Corbett_ Wrote: Oct 03, 2012 11:38 AM
Our capitol gains tax should be eliminated entirely. You get less of whatever you tax. If you tax investing in business, you get less of it.
Willdit Wrote: Oct 03, 2012 2:54 PM
I agree. Haven't you ever gotten a raise and then made LESS money because it threw you into a higher tax bracket? It happened to me once. Very disappointing.
Annie-Esq Wrote: Oct 03, 2012 1:21 PM
I agree with the philosophy that the less you tax the more revenue you gain from that tax. Reagan proved that. But, as much as I would love to have no capital gains tax -- I don't think it should be totally elminated - but maybe 10%-15% would be reasonable. Businesses, GDP, employment would go GANGBUSTERS if we had a lower capital gains tax. It would help real estate prices too.
DagNabbit Wrote: Oct 03, 2012 12:21 PM
Corbett, that is statistically and demonstrably not true.
ericynot Wrote: Oct 03, 2012 12:10 PM
Corbett,

That's baloney. I never considered working less because some of my income was going to go toward taxes.

ALL of my income these days is from capital gains and I support taxing it as ordinary income. Better yet, implement the FairTax and do away with income tax altogether.
DB07 Wrote: Oct 03, 2012 12:19 PM
Corbett is right though...people resond to incentives. Does everyone? Well, no.....many people couldn't tell you what their marginal tax rate is, and we have a much flattened rate today anyway. But the aggregate does respond....according to any econ course I took or econ book I read. If you have evidence otherwise eric, please share.
magnetar Wrote: Oct 03, 2012 12:21 PM
because you never had to pay punitive rates of 55 or 60%
jmeans Wrote: Oct 03, 2012 12:27 PM
The only fair tax is one that taxes every transaction indiscriminately. If we define income as money received for any purpose but the repayment of loaned principal and taxed it at 1% it would produce more revenue than the present system. Who would deny the government 1%?

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...