Capital Gains and the Top 0.1%

[WhatsHisNuts]

http://news.yahoo.com/top-0-1-nation-earn-half-capital-gains-172647859.html

Couple highlights/lowlights from the article:

Income and wealth disparities become even more absurd if we look at the top 0.1% of the nation's earners-- rather than the more common 1%. The top 0.1%-- about 315,000 individuals out of 315 million-- are making about half of all capital gains on the sale of shares or property after 1 year; and these capital gains make up 60% of the income made by the Forbes 400.

It's crystal clear that the Bush tax reduction on capital gains and dividend income in 2003 was the cutting edge policy that has created the immense increase in net worth of corporate executives, Wall St. professionals and other entrepreneurs.

" We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both."
-Justice Louis Brandeis

 

[smurphy]

What logical argument is there for capital gains to be taxed in any way different from regular income anyway?

Oh shit, I see a cop. He's gonna pepper spray me for asking that question.

 

[StevieD]

Any wonder why Cain doesn't want to tax Cap Gains?

 

[WhatsHisNuts]

No response from the protectors of the rich? Interesting.

 

[Trench]

What logical argument is there for capital gains to be taxed in any way different from regular income anyway?

This is one of the better questions I've seen asked in here in some time, yet no one's willing to take it on?

In the name of Ronald Wilson Reagan, will no one carry the torch of trickle-down economics? :shrug:

 

[Skulnik]

If you feel strongly about the Cap gain rate being LOW, pay more.

JMHO

Nuff Said

:0074

 

[Trench]

If you feel strongly about the Cap gain rate being LOW, pay more.

JMHO

Nuff Said

:0074

I was addressing the adults in the forum, Skul.

You just try to keep the colors inside the lines there, little feller.

 

[WhatsHisNuts]

If you feel strongly about the Cap gain rate being LOW, pay more.

JMHO

Nuff Said

:0074

Is that really the issue? Or, is it that the tax rate is at least 1/2 of what it should be? It makes no fucking sense. Why do I pay a higher tax rate on money I earn by going to work every day than a rich dude who simply invested it?

 

[ssd]

......because the rich dude already paid taxes on the income he invested. He, or someone in his family, already earned that money and paid regular income tax on it.
Why then should it be taxed again at the same rate?
Some would argue why should it be taxed at all? It is double taxation.
Same with the death tax. People save and invest their savings, pay taxes on the earned income only to have their inheritance taxed again upon death?

The country does not have an income problem.
It has a spending problem.

The tax code is a joke but that is not the real issue here.

 

[WhatsHisNuts]

......because the rich dude already paid taxes on the income he invested. He, or someone in his family, already earned that money and paid regular income tax on it.
Why then should it be taxed again at the same rate?
Some would argue why should it be taxed at all? It is double taxation.
Same with the death tax. People save and invest their savings, pay taxes on the earned income only to have their inheritance taxed again upon death?

The country does not have an income problem.
It has a spending problem.

The tax code is a joke but that is not the real issue here.

Bull shit. The money I was paid was already taxed and so is the money I spend. Capital gains is income, treat it like it.

 

[Mags]

I'll jump in here - I agree that capital gains should be taxed as other income.

But all cash based income should be taxed as well. There is a lot of income that is made via "cash jobs" - or tip income - that is untaxed.

Tough to do - but would increase tax receipts a ton if they could get it all under control.

Maybe, with the technology today, it is time to move to an electronic system, and get away totally from a cash based system. Then we could get all the income taxed - no more hiding it by anybody - even the drug dealers.

It would be shocking how much tax receipts would go up - if we incliude both capital gains and cash based income.

There is your solution. However, I do believe we also have a spending problem too - WAY too much on entitlements. IF we do both, spending cuts and find a way to tax ALL income failry, and get rid of the societal offsets (child credits, mortage deductions, earned income credits, etc), we'd have plenty of money to have a balanced budget AND pay some of that ol' deficit down.

 

[WhatsHisNuts]

Nobody is arguing that spending isn't fucked.

 

[Trench]

......because the rich dude already paid taxes on the income he invested. He, or someone in his family, already earned that money and paid regular income tax on it.

By that logic, you could argue that every dollar in circulation in the U.S. economy was taxed at some point, so why should it be taxed again?

Income is income no matter how you try to rationalize it.

 

[Trench]

I'll jump in here - I agree that capital gains should be taxed as other income.

But all cash based income should be taxed as well.

That sounds good in theory, but not feasible in practice.

If you're serious about generating revenue, a much more feasible approach would be to tax all stock trades.

 

[Mags]

That sounds good in theory, but not feasible in practice.

If you're serious about generating revenue, a much more feasible approach would be to tax all stock trades.

Why couldn't you tax all cash income?

Very simple - make cash transactions illegal, with a $1K bounty for anyone that turns someone in for a cash transaction - a felony - yes, some folks would risk it, but a lot wouldnt.....

 

[Trench]

Why couldn't you tax all cash income?

Very simple - make cash transactions illegal, with a $1K bounty for anyone that turns someone in for a cash transaction - a felony - yes, some folks would risk it, but a lot wouldnt.....

So what you're saying is...

Legalize drugs but outlaw cash!

It's brilliant!!!

I can't believe I'm saying this but it's just crazy enough to work! :0074

 

[pd1]

......because the rich dude already paid taxes on the income he invested. He, or someone in his family, already earned that money and paid regular income tax on it.
Why then should it be taxed again at the same rate?
Some would argue why should it be taxed at all? It is double taxation.
Same with the death tax. People save and invest their savings, pay taxes on the earned income only to have their inheritance taxed again upon death?

The country does not have an income problem.
It has a spending problem.

The tax code is a joke but that is not the real issue here.

So you are saying the Walton family has already paid taxes on all of those billions of walmart stock.
I don't think so.

 

[Chadman]

Perhaps if the Capital Gains tax rate was equal to other income taxes, those that currently hold so much of the money in this country would actually DO what many CLAIM they do to try to make more money. Put people to work - which most of them don't now, but many say they do. The capital gains situation is the EXACT reason why the income tax rates are not punishing to high income earners - most of these people (if not all of them) invest and lower their effective tax rates. Something that middle and lower class people cannot afford to do.

How anyone can argue this point when you look at where the concentration of wealth is (and it's growing faster than ever before) in this country is beyond me.

 

[Cie]

Perhaps if the Capital Gains tax rate was equal to other income taxes, those that currently hold so much of the money in this country would actually DO what many CLAIM they do to try to make more money. Put people to work - which most of them don't now, but many say they do. The capital gains situation is the EXACT reason why the income tax rates are not punishing to high income earners - most of these people (if not all of them) invest and lower their effective tax rates. Something that middle and lower class people cannot afford to do.

How anyone can argue this point when you look at where the concentration of wealth is (and it's growing faster than ever before) in this country is beyond me.

How about placing an annual cap on cap gains at $25K , with the rest of the cap gains income being taxed at your respective bracket. This would make more sense to me, as otherwise, we'd still will be hurting the more prosperous members of the middle class.

 

[StevieD]

How about placing an annual cap on cap gains at $25K , with the rest of the cap gains income being taxed at your respective bracket. This would make more sense to me, as otherwise, we'd still will be hurting the more prosperous members of the middle class.

Not a bad idea. :0074