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Capital Gains Taxes

Jack2894 Wrote: Oct 03, 2012 3:25 PM
No it is not. WE do NOT pay taxes on money. We pay taxes on income. The investor and the corporation are separate entities with separate incomes. That is one of the effects of incorporation.
3129 Wrote: Oct 03, 2012 5:17 PM
Hence the corporate "loopholes" that result in the corporations reinvesting their income into the business rather than declaring it to be profit. The result is more jobs for working stiffs who have to pay income taxes, resulting ultimately in more money for the government because it is the working stiffs who collectively pay more tax money than the 1% top bracket. Recheck the Laffer curve. Viva la revolucion

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...