Originally Posted by Fedaykin
They don't pay ****ing income tax anywhere if they get their money from capitol gains, idjit.
As for sales tax, they pay a pittance because they spend nowhere near the same % of their income as regular folk do. Most people spend nearly 100% of their income each year (see the savings rate figures). This means they pay very close to the full sales tax rate.
The upper 1% don't spend anywhere near 100%, meaning they pay an equally tiny amount in taxes compared to their income.
Seriously. This is not a ****ing hard concept. Are you really this daft?
Capital gains are less because investments don't always make money. They are risky. Take my brother in law for example. He is a software engineer and now works for a company making good money. Wasn't always so though. He tried to strike it big working for a start up back in the early 90's. He worked for only 60 grand a yr but got a ton of stock options. Had the company done well he would have made a ton of money. Unfortunately it didn't work out and in the end the stock was worthless.
That is why capital gains is lower, it encourages people to go for it, to try and make a splash in the world.
You ask me why don't i understand. Let me ask you do you understand that investements are risky and don't always make money?
Now if someone can show me how we can stop a CEO from accepting his pay in stock that is already super valuable, then maybe I could go along with it. I do agree a very small % of CEO in the right position are skirting paying their fair share by taking stock options in low risk, or no risk situations and paying less % then they probably should be. But that is a low % of the overall captial gains taxes going on in the country.