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Capital Gains Taxes

Willdit Wrote: Oct 03, 2012 2:45 PM
Silly man, the interest income is taxed at the same rate as ordinary income. Also, Warren must have a "special" savings account because the rest of us are gettiing only .25%, yes one-quarter of one percent on our savings. See he invests his income, thereby taking a risk and so he only pays the capital gains rate on when he makes. This is what Thomas was talking about.

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...