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Capital Gains Taxes

None1257 Wrote: Oct 03, 2012 11:44 AM
There was a time, when a person took that gamble, they not only had to pay a tax on that gain, when they made the right decision, but also was able to write off their loses when they made the wrong decision. Not any more. You pay a tax on the gain if youo made the right choice, but you cannot write off all of the loses, when you made the wrong deicision.

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...