This is one of the dumber arguments coming out of the right. The fact is that all capital gains/income is ultimately originated from after tax dollars. If I save up and buy a gas station with after tax dollars should I not have to pay taxes on gains because the initial investment was made in after tax dollars?
There is a very significant distinction to be made between capital gains and income, and the tax treatment for each should be separate accordingly. In your gas station example, your income is taxed as revenue net of expenses, and is unrelated to your initial investment. Cap gains would come into play if 10 years later you decide to sell your gas station for more than you paid for it. Using your logic, the seller should pay tax on the entire sale price rather than just the incremental amount.
I agree as I said above, Most of what people call tax loopholes are benifits provided by Congress to buy votes. The so called loopholes were placed into the code by Congress with the intent that they be used and as a way for them to say “see what I did for you”
If you really want a fair tax then you would move to a flat tax with a single standard deduction that is the same for everyone.
But no on really wants a fair tax. What they really want is a someone else to pay more while they pay less.
Even the wealthy who support higher taxes on the “rich” are hypocrites because if they felt that they should pay more taxes then they could either take fewer deductions or gift money to the Treasury.
Even the hero of the left Michael Moore took huge tax credits when filming his movies, buys a mansion and then runs around saying that the rich should have fewer of the very tax benifits he takes advantage of.
As a Sec 501(c)(3) organization, the Mormon Church is not permitted to make donations to political candidates or super PACs. Internally, the Mormon Church has banned its members from making contributions individually, although some had made contributions to both Romney and Obama before the ban was announced.
This is one of the dumber arguments coming out of the right. The fact is that all capital gains/income is ultimately originated from after tax dollars. If I save up and buy a gas station with after tax dollars should I not have to pay taxes on gains because the initial investment was made in after tax dollars?
There is a very significant distinction to be made between capital gains and income, and the tax treatment for each should be separate accordingly. In your gas station example, your income is taxed as revenue net of expenses, and is unrelated to your initial investment. Cap gains would come into play if 10 years later you decide to sell your gas station for more than you paid for it. Using your logic, the seller should pay tax on the entire sale price rather than just the incremental amount.
I think LBriscoe is pointing out that the capital gains to which you wish to tax are really just another form of prior savings and that savings has already been taxed. The fact that the asset in which the prior savings has been converted has changed in value is not really income in the most basic sense. The US has long recognized this which is why the BEA does not count capital gains as part of the US National Income
I wouldn’t call the capital gains tax at 15% a “loophole.” It encourages long term investment and something that anyone can take advantage of and should. The problem is that most of the middle class does not and my guess is most of the middle class only hold stock or mutual funds in retirement funds and in a retirement fund there is no cap gains tax. Who’s fault is that?
What I find hysterical is when bottom feeders like Warren Buffett come out and make egregious statements of how low his tax rate is to get people all riled up. The average person does not understand that WB probably doesn’t have any wage income or it is minimal. You could raise the personal income tax to 99% for people who make over 1 mil and it probably won’t affect him at all. The Dems would love to European level tax rates here. OMG, Warren Buffett’s secretary pays more in taxes than he does!!!! Yeah, sure she does.
What “loopholes” are there for people who don’t earn much considering most people don’t pay taxes in the US? Is that a joke? Is the EIC a “loophole” or a form of welfare?
As a Sec 501(c)(3) organization, the Mormon Church is not permitted to make donations to political candidates or super PACs. Internally, the Mormon Church has banned its members from making contributions individually, although some had made contributions to both Romney and Obama before the ban was announced.
I wouldn’t call the capital gains tax at 15% a “loophole.” It encourages long term investment and something that anyone can take advantage of and should. The problem is that most of the middle class does not and my guess is most of the middle class only hold stock or mutual funds in retirement funds and in a retirement fund there is no cap gains tax. Who’s fault is that?
What I find hysterical is when bottom feeders like Warren Buffett come out and make egregious statements of how low his tax rate is to get people all riled up. The average person does not understand that WB probably doesn’t have any wage income or it is minimal. You could raise the personal income tax to 99% for people who make over 1 mil and it probably won’t affect him at all. The Dems would love to European level tax rates here. OMG, Warren Buffett’s secretary pays more in taxes than he does!!!! Yeah, sure she does.
What “loopholes” are there for people who don’t earn much considering most people don’t pay taxes in the US? Is that a joke? Is the EIC a “loophole” or a form of welfare?
I don’t understand why it is taking at face value that “encouraging long term investment” and simultaneously discouraging consumption is a good thing. Personally, I think the less impact the gov’t has on the economy, while meeting its financial obligations, the better. The current crop of Republicans should follow their hero Ronald Reagan and advocate for a similar tax rate on both earned and investment income.
There is a very significant distinction to be made between capital gains and income, and the tax treatment for each should be separate accordingly. In your gas station example, your income is taxed as revenue net of expenses, and is unrelated to your initial investment. Cap gains would come into play if 10 years later you decide to sell your gas station for more than you paid for it. Using your logic, the seller should pay tax on the entire sale price rather than just the incremental amount.
I agree as I said above, Most of what people call tax loopholes are benifits provided by Congress to buy votes. The so called loopholes were placed into the code by Congress with the intent that they be used and as a way for them to say “see what I did for you”
If you really want a fair tax then you would move to a flat tax with a single standard deduction that is the same for everyone.
But no on really wants a fair tax. What they really want is a someone else to pay more while they pay less.
Even the wealthy who support higher taxes on the “rich” are hypocrites because if they felt that they should pay more taxes then they could either take fewer deductions or gift money to the Treasury.
Even the hero of the left Michael Moore took huge tax credits when filming his movies, buys a mansion and then runs around saying that the rich should have fewer of the very tax benifits he takes advantage of.
The church also holds several non-tax-exempt corporations, such asBonneville International and the Deseret News.
" CFAvsMBA is the brah'da, that plays the role of another brah'da, that is a brah'da"
I think LBriscoe is pointing out that the capital gains to which you wish to tax are really just another form of prior savings and that savings has already been taxed. The fact that the asset in which the prior savings has been converted has changed in value is not really income in the most basic sense. The US has long recognized this which is why the BEA does not count capital gains as part of the US National Income
I wouldn’t call the capital gains tax at 15% a “loophole.” It encourages long term investment and something that anyone can take advantage of and should. The problem is that most of the middle class does not and my guess is most of the middle class only hold stock or mutual funds in retirement funds and in a retirement fund there is no cap gains tax. Who’s fault is that?
What I find hysterical is when bottom feeders like Warren Buffett come out and make egregious statements of how low his tax rate is to get people all riled up. The average person does not understand that WB probably doesn’t have any wage income or it is minimal. You could raise the personal income tax to 99% for people who make over 1 mil and it probably won’t affect him at all. The Dems would love to European level tax rates here. OMG, Warren Buffett’s secretary pays more in taxes than he does!!!! Yeah, sure she does.
What “loopholes” are there for people who don’t earn much considering most people don’t pay taxes in the US? Is that a joke? Is the EIC a “loophole” or a form of welfare?
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And how much have those entities donated to the Romney campaign?
You can fondle the cube, but it will not respond.
I don’t understand why it is taking at face value that “encouraging long term investment” and simultaneously discouraging consumption is a good thing. Personally, I think the less impact the gov’t has on the economy, while meeting its financial obligations, the better. The current crop of Republicans should follow their hero Ronald Reagan and advocate for a similar tax rate on both earned and investment income.
What is a “supper pact” and why did I just get hungry?
I used to smoke pot and go to class.
Sneak in ten minutes late with a bullsh*t excuse.
Slink down low at my desk.
Pray to god nobody asked me any questions.
I was the best teacher ever.
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