In response to:

Capital Gains Taxes

Jay Wye Wrote: Oct 03, 2012 4:44 PM
it's guaranteed that if a non-exempt employee works 40 hours,they get paid for 40 hours,by law. Overtime is guaranteed,by law. OTOH,if a business owner works 40 hours PLUS,they may not get paid the same wages,if the business is failing and can barely pay it's bills. NO guarantees.

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...