In response to:

Capital Gains Taxes

wtmoore1 Wrote: Oct 03, 2012 10:15 AM
I have never understood the conservative penchant to treat dollars invested as worth so much more than the investment of labor, ingenuity, or entrepreneurship. Sowell's point that capital gains should be taxed at a lower rate falls a little flat when coupled with the fact that investors/owners are entitled to 100% of the corp's residual cash. The benefit that offsets the risky nature of the investment is the possibility of a windfall as well as a bust. The investor risks losing the whole principal, but they also have a chance at any profits that might arise without limit. A lower capital gains rate doesn't change that calculus much, it just makes it very apparent that we value rich people investing dollars more than we value working.
Ron4594 Wrote: Oct 03, 2012 11:36 AM
Ron4594 Wrote: Oct 03, 2012 11:29 AM
DB07 Wrote: Oct 03, 2012 10:19 AM
Did you READ the article? And why is it only rich people? Do you have no assets at all, no pension or 401K?
wtmoore1 Wrote: Oct 03, 2012 10:38 AM
Yes I did read the article, so let me rephrase...

I never said that ALL investors are rich. I said, we treat the investment of dollars by rich people as more important than the labor and ingenuity of the working class.

Don't stop at the article, DB. Actually read my comment if you want to criticize (or not, I'm not sure why I'm assuming you would take the time to read anything before firing from the hip).
DB07 Wrote: Oct 03, 2012 11:02 AM
I read every word wtmoore, but my response was mainly to " apparent that we value rich people investing dollars more than we value working." The points of why capital gains should be treated differenly were discussed in the article, and your point about profits "without limit" is a red herring. The vast majority of investments return a modest profit at best.
Original2 Wrote: Oct 03, 2012 11:15 AM
Is it beyond your comprehension that a company's profits are ALREADY taxed once before they leave the books of the company, and then taxed AGAIN when distributed to owners or investors?

Wages are an EXPENSE- they are taxed only when received by the wage earner.

The government actually plucks a much larger percentage of tax money from a dollar which is earned by a company and then distributed to individual investors than we do a dollar which is earned by a wage-earner.

Your argument is emotional, not factual.

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...