In response to:

The Wall Street Journal’s Primer on Capital Gains Taxation

Ray251 Wrote: Sep 24, 2012 2:15 PM
Cap Gains & Dividends should be 0 for other reasons. Say I invest money into XYZ company. Maybe it makes money, maybe it doesn't. There's risk involved & I could lose my investment, as opposed to my paycheck, where the only risk is if the check bounces. Secondly, say I'm lucky enough for the company to actually make a profit. These profits are already taxed at the highest rate in the world - 35%. If the dividends I might receive thereafter are taxed at the current 15%, it brings the effective rate to just under 45%. That's why the "Buffet Rule" is a myth. His secretatry doesn't take risk & pays less than 45%

One of the principles of good tax policy and fundamental tax reform is that there should be no double taxation of income that is saved and invested. Such a policy promotes current consumption at the expense of future consumption, which is simply an econo-geek way of saying that it penalizes capital formation.

This isn’t very prudent or wise since every economic theory agrees that capital formation is key to long-run growth and higher living standards. Even Marxist and socialist theory is based on this notion (they want government to be in charge of investing, so they want to do...

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