Investment income should be taxed like regular income. I see no reason not to other than to keep the ultra rich, ultra rich.

Edit: Btw, it is taxed as regular income for short term investments.

He typed 1000, I added a zero. Blame it on the lack of sufficient caffeine.



Uh, never said you did? The capital gains tax is on the profit of the investment, not the investment.


The $1k was income and it was already taxed as income at income tax rates.


The profit is not income - nor should it be taxed as "income" at income tax rates.


Everyone's capital gains tax is the same - but because everyone is paying the same rate this is somehow "not fair"

 

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Income is income is income - stop class warfare!

 

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No kidding. I always look for people making this argument about capital gains because it is a surefire sign they're a complete moron.


His other points are also stupid and/or incorrect. Raising the capital gains rate only lowers available investment income to the extent that any tax lowers economic activity, and because it reduces the incentive to fraudulently catagorize income as capital gains for tax purposes when it really isn't.


Finally, higher capital gains rates raise the cost of capital for risky investments but that's not necessarily a bad thing given the economic history of the past 5 years. "Effect investment decisions" just means "tilts the calculus towards safer, lower-return investments."

We provide plenty of oppotunity for people to invest in their retirement without worrying taxation on capital gains.


Taxes on labor also impact investment calculations. In fact they impact the calculation whether the investment turns positive or not.


The idea that a low capital gains tax rate is about encouraging investment or retired people and is somehow a necressary part of establishing economic incentives is ignorant and illogical nonsense.

 

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RAISE SKONK'S TAX RATE

 

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All income should be taxed the same. Koneg and sansfear show us there is no good argument otherwise.

There is something unseemly about rich people in government looking for tax cuts for themselves. How the hell do you vote for people of such low character?

I live almost entirely off of capital gains income and have for a few years now. It's insane that I pay such a low tax rate on it and I would have no problem with that income being taxed at the same rate as my other income.

More than half of all capital gains income paid out over the past 20 years...went to the top .1% of the country. Yes, that is zero point one percent.

It's not about poor little old grandmas retirement, it's about Mitt Romneys and John Kerrys of the world paying a lower tax rate than the guy who cleans their toilets. As has been mentioned, simply set up a progressive tax rate structure if you want to help out grandma.....or crusty old bastards like me.

Investment being preferentially taxed is the greatest tax distortion in economic history. It always cracks me up seeing RWNs cry about the distorting effects taxes have on the free market and the ignore the biggest distortion of all.