Originally Posted by cutthemdown
Answer this. Should capital gains tax be less then income tax?
Remember the house you sell for a profit could have went down in value. The stock could have crashed. The business you didn't build could have went under. So when these people make money remember they could have lost money.
So should capital gains be raised? Maybe a smart move would be to target just the CEO's taking stock options instead of pay, for companies whose stock is already worth a lot of money. IMO start ups are different. You people realize sometimes a software engineer, etc will work for next to nothing hoping the stock option he is paid in become worth millions. But it doesn't always work out.
So many varibles to different investments and dollars that come through capital gains. it will take a sharp knife making minute adjustments to it, or you risk really screwing some Americans who didn't deserve it.
The CEO's you liberals are pissed at make up a very small % of people who pay capital gains. Even guys who may go a few yrs with little income working on a big project. Then when payoff comes they make millions. Still though they deserve a lower rate. That **** is risky.
The landscape littered with investors who lost it all. it's a joke that people think capital gains should go up. 15% is plenty high.
Absolutely capital gains should be taxed at a higher rate. Incidentally, the Center on Budget and Policy Priorities shows that, according to your statements, you don't really know much about capital gains.
10 Things You Need to Know About Capital Gains
1. Capital gains tax rates are the lowest since the Great Depression.
2. There’s no evidence that low capital gains tax rates boost the stock market, investment, or the economy.
The Congressional Research Service (CRS) found no statistically significant correlation between the top capital gains or marginal income tax rates since 1945 and: (1) private saving; (2) investment; (3) growth in labor productivity; or (4) growth in real per capita GDP.
3. A large share of capital gains is never subject to capital gains tax.
Unrealized capital gains (i.e., capital gains that have not been “cashed in”) make up an estimated 36 percent of the value of all estates and 56 percent of the value of estates worth more than $10 million. Moreover, estates worth less than $5 million per person ($10 million per couple) are exempt from the estate tax, so their unrealized capital gains will face neither capital gains tax nor estate tax.
4. Capital gains are highly concentrated at the top.
The top 20% of households receive 94% of all capital gains.
5. The benefits of preferential tax rates for capital gains and dividends go overwhelmingly to the highest-income taxpayers.
TPC estimates that, in 2011, the preferential rates raised after-tax incomes by 7.5 percent (an average of $356,750) among the top 0.1 percent of taxpayers but by just 0.1 percent (an average of $23) among the middle fifth of households.
6. The 2003 cut in the capital gains rate cut was highly regressive.
The 2005 cut from 20%-15% alone raised after-tax incomes by 2.2 percent (about $75,800 on average) among the top 0.1 percent of filers but by just 0.03 percent (about $10) among the middle 20 percent of filers.
7. The capital gains tax preference is a major reason why the tax code violates the Buffett rule.
households with incomes between $50,000 and $75,000 who receive most of their income from their paychecks (as middle-class people generally do) paid 14.9 percent of their income in federal income and payroll taxes in 2011, according to TPC. Millionaires who received more than a third of their income from capital gains and qualified dividends faced a 14.6 percent effective tax rate, and millionaires who derived more than two-thirds of their income from these sources faced a 12.0 percent rate.
8. Tax preferences for capital gains are inequitable.
Two families who have the same amount of income and are otherwise similar in their expenses and family situations may end up paying vastly different amounts of tax depending on whether they generate most of their income from wages and salaries or from tax-preferred investments.
9. Tax preferences for capital gains are costly.
Letting the capital gains rate return in 2013 to 20 percent for couples with adjusted gross incomes over $250,000 ($200,000 for single filers), as the Administration has proposed, would save about $36 billion over ten years. That’s more than the projected budget for the Food and Drug Administration over the same ten years.
10. Raising Capital Gains and Dividend Rates Would Have Little or No Impact on Most Elderly Households
Nearly all elderly households (96 percent) had incomes below $200,000 in 2011. The Administration’s proposal to allow the capital gains rate to rise modestly for upper-income households wouldn’t affect these households at all.