In response to:

Why Tax Capital Gains?

Ryan385 Wrote: Apr 14, 2012 10:43 PM
Um. . it doesn't increase the rate with increasing income? What exactly are you talking about? Fair tax would exempt everyone - rich or poor alike - from the cost of the basic necessities of life. Above that, its all the same. Critique it if you like, but at least try to have a basic understanding of it before you do.

Income tax time is an appropriate moment to go to the heart of President Obama’s complaint about the taxes Warren Buffett and other rich people pay, or don’t pay. What the president is really complaining about is that the tax rate on capital gains is too low.

But there is a more basic question to be asked: why tax capital gains at all?

Did you know that the term "capital gains" does not even appear in the official income accounts for the U.S. economy? That’s right. No matter how high stock prices climb, they do not affect the official reckoning of...