What everybody seems to keep skipping over is that most of Warren Buffet's and Mitt Romney's and (fill in rich guy name here) income is not from wages. Their income is investment income. They are simply paying the rate that is owed on capital gains and dividends on investments. Anyone taking large wages (income) is paying the highest income tax rate in the country. If they feel they should be paying more taxes on investments, they soon will be. The 15% cap will most certainly be raised by the current administration. Is that a good thing? Maybe not, to me it would seem that it might deter some folks from some investments. Some of those investments might be just what we needed to create new jobs.?? Thoughts on this?
Who is you folks , lol. I have stated before I am fine with a flat tax for everyone. So you're barking up the wrong tree. Thanks again
Regan thought income and investment should be taxed the same. He raised capital gains to 28%. Most forget that or choose to. I for one think it's a bad idea.
I will say I don't see a difference between capital gains income, vs earned income (wages), income is income to me. If anything I feel earned income should be taxed at a lower rate than capital gains income. Why? Because the people who "earned" the income had to do something other than put the money in a bank. Inheritance, is not income, so there I see a difference. Income earned on inheritance is income. Outside of that, income is income.
Think you missed what I was saying there and I don't really wanna try to re-hash it but the theory that consumers in the middle and below are the ones that can't afford to contribute more(or any)taxes but they have enough money to spend to stimulate the economy seems oxy-moron to me.
So, you're saying, if tax rates were raised on capital gains, then people would be less likely to invest. So, instead of continuing to make a profit, they'd forgo that profit just because it got taxed more? That's about as ignorant as the people saying they're only going to make $249,000 a year so they're not put into a higher tax bracket. Rather, I should say, then those people would be nearly as ignorant as the people that say they're going to do what they can to come in under $250,000. Those people make me laugh to the point of tears at how ignorant they really are.
I remember. In my opinion it really stiffles the economy. There is risk involved in investing and the lower tax rate is the reward for taking a risk and encouraging people to save money for their retirement. Many of those investments are producing capital for companies to expand and create jobs. Kind of a vicious circle.
I thought the % return was the reason for taking chances. Hence, high risk vs low risk. Do you think people only invest due to lower tax rates? Do you not also think it's because it's a chance to make more money? Risk/reward, kinda pertains to different funds to invest in. They take a greater risk for a chance at a greater payout. I don't think higher capital gains (income) will deter people from trying to make more money with their money. That's akin to saying, "You mean if I win $100 you're going to take $50 of it? Well I don't want the $100 then."
I dont think you are understanding this very clearly. First of all, only the income over each threshold is taxed at the higher rate when it comes to income taxes. Not the entire amount. Also, people do in fact take less risk when the taxes are raised on investment income. The other thing that happens is when investment income is raised for domestic investments, more and more of our US dollars are invested over seas in more favorable investments. There is no guarantee for profit in most investments so yes, there needs to be good incentive to encourage it. Low taxes on those investment is a very big driving force in that decision process and keeps the money here at home where it creates jobs and stimulates the economy. Basic economics, not ignorance.
Lmao economic understanding is revealed with the stance that higher tax on investments would not deter from higher risk investments. High risk for high rewards, lowering the reward lowers the reason to take said high risk. It's becoming a more popular mindset among those of us without money that those that have money were simply given it and didn't earn it. It's sad really.
Actually it does matter where the money is invested. Investment money drives the growth engine. So if companies get more investment money then can grow their business. This growth means higher wages, so the 47% can start paying taxes and new can be happy
The fact is, yes, a lot more money gets put into investments when the taxes are more favorable. If higher investment income taxes eat away at the potential profits, its more likely people will sit out of the market and invest in things like land or gold or silver, etc. (long term) That does not do much for stimulating job growth. In reference to your other post about inheritance. You make it sound like the only people that are making investment income are doing so because they inherited a lot of money. That could not be further from the truth. Many people, myself included, have investment income from money that was hard earned and then put to work in the market or other investments. You seem very bitter that there are rich people in the world that happened to be born into a trust fund or inherited a lot of money. I say good for them, I wish it was me. But, instead of whining about it and worrying about how much tax they pay, I am going to bust my butt and hope that someday I can make life much easier for my grandkids by working hard and investing wisely. Give it a try, you might end up being so stinking rich that you cant stand yourself. If you do, I hope you still feel the need to hand most of it over to the government.
The elephant in the room is the inheritance tax break that ends, that is huge. If it goes back to pre-bush I hope nobody dies and leaves me money
So you're saying people wouldn't invest if capital gains taxes were higher? Did people not invest in the 90s? Again, higher payouts are the reward for higher risk investments, not low tax rates. I don't think capital gains should be taxed exorbitantly, but 15% is low in my opinion. Investment, in and of itself, is a mode of making money. Taking one's extra money and letting someone else use it with the idea of gain, real or perceived, is the reason for investment. If capital gains taxes were too high, I agree, it would deter people from making investments. That said, raising them a little from the 15% they're at, will not.
[video]http://m.youtube.com/#/watch?v=yzytYXzFK7c&desktop_uri=%2Fwatch%3Fv%3DyzytYXzFK7c[/video] Funny stuff
