In response to:

Capital Gains Taxes

skywalker58 Wrote: Oct 03, 2012 9:30 AM
The one point I agree with is reforming the entire tax code. IF there is going to be an income tax, it should be a flat rate, no deductions. I think 10% is enough. God only asks for 10% so government should be able to operate on that. If they can't then they are trying to do too much. No more charity from government. Let private charity organizations handle feeding the poor and tending to those who really need help. Let the lazy, worthless paracites who WON'T work starve. It is easier to separate those who need from those who won't at the local level and by organizations who have to stretch every penny and not be wasteful.

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...