In response to:

Capital Gains Taxes

Jay Wye Wrote: Oct 03, 2012 4:39 PM
sorry,but the investors ARE part OF the company;they OWN it. the company's profit IS their profit,and they receive it as a distribution,if it's not rolled back into the company's expansion or held as cash in the bank.

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...