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Capital Gains Taxes

DB07 Wrote: Oct 03, 2012 11:07 AM
Horde is perhaps not the best word, but it's a good one. As was seen in the great depression, capital is to some extent on strike, due primarily to increased regulation (insiduous as you noted) and to uncertainty. What's on the table to cause the uncertainty? proposed tax increases on capital gains, for one thing!
Horribilus Wrote: Oct 03, 2012 11:15 AM
Not direct taxes DB. Those can be accounted for. The insidious are things like Obamacare. Of course the Supreme Court took that one out of the closet. Right now we are trying to build a sports complex for our school. Every regulation comes with a hefty fee and the rules are constantly changes. These are some of the insidious.

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...