BlindBoo
Diamond Member
- Sep 28, 2010
- 56,951
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Do what?
1) its not your money
2) it is not your money
3) it is not your money
Do you libs understand that? do you also understand that taxes are paid on capital gains? do you also understand that most of that wealth has been taxed once?
and before you claim thats not true, I trade stocks with money I earned from my job
Free ride?
Capital gains tax in the United States - Wikipedia, the free encyclopedia
JRK earns the welath by working 10 hours a day
Pays taxes on that wealth
JRK puts part of whats left at risk by buying stocks in an American company that will us that wealth to expand there product, to create wealth and jobs for others
JRK makes gains on that wealth he put at risk (sometimes)
JRK pays taxes on that welath that you my friend at no time lifted one finger to help, and now you call me greedy and you want more
THATS NUTS
Nutz.
Again. Short term capital gains are taxed at the normal income rate. Long term capital gain are taxed at 15% or lower depending on your bracket.
The Gains are not the wealth use for investment. They(the gain or loss) would be the difference between the price you paid for the stock and the price you sold it for. If that number is positive you pay taxes on it. If it's a negative you can take the loss (of wealth) as a deduction from your gross income.
I hope that clears up the whole idea that capital gains tax somehow taxes your wealth twice.
Overtaxed Capital Gains
There are three ways to argue that capital gains are double taxed (or simply overtaxed). All three are real and cannot be denied by Democrats.
(1) All taxation of saving is a form of double taxation. This observation is nothing new to economists. For example, in 1848 the British philosopher and economist John Stuart Mill wrote: "Unless . . . savings are exempt from tax, the contributors are taxed twice on what they save, and only once on what they spend." Since then, economists have often said things like "income from saving is taxed twice." This is another way of saying an income tax is biased against saving -- a bias not shared by a consumption tax.
Source: IRS, Statistics of Income division, "The 400 Individual Income Tax Returns Reporting the Highest Adjusted Gross Incomes Each Year, 1992-2006," available at http://www.irs.gov/pub/irs-soi/06intop400.pdf.
(2) Profits giving rise to capital gain on equities have already been subject to corporate tax. There is no good economic justification for the corporate tax. It is unfair and inefficient to tax profits first with the corporate tax and then again with an individual tax either on dividends or capital gains.
Effective Tax Rates on Investment
(Real Rate of Return = 5%; Capital Gains Rate = 15%)
(3) Inflationary gains are not real income and should not be subject to tax. The relative stability of the price level over the past three decades has greatly reduced concerns about the highly detrimental effects of inflation on the operation of the income tax. But even at low levels, inflation overstates returns to capital. One manifestation of this problem is the taxation of inflationary gains as if they represented appreciation in real value.
(1) Tax on capital gain is deferred until gains are realized. Deferral of unrealized gain provides a tax benefit. The size of the benefit grows with the holding period and the rate of return on the asset.
How does the benefit of deferral compare with the extra burden caused by the taxation of inflationary gains? The combination of the two can put the effective tax rate on capital gains either above or below the statutory rate. Which effect is stronger depends on the level of inflation and the length of the deferral period. It is interesting to note that time usually heals the wounds of inflation. Over long holding periods (e.g., 25 years), the detrimental effects of inflation are almost always eliminated by deferral, so the effective rate of tax is below the statutory rate. (See the table above.)
(2) Unrealized gains are untaxed if assets are held until death. Except in the wacky tax year of 2010 (when the estate tax was temporarily repealed), heirs get a tax-free step-up in basis of inherited property. So unrealized gains that have accrued between the time of purchase and the time of death are free of individual tax (although they can be subject to the estate tax). Step-up in basis at death eliminates tax on both real and inflationary gains.
(3) Capital gains are taxed at 15 percent. This rate equals the 15 percent rate on dividends but is far below the top statutory rate of 35 percent. If the Bush tax cuts expire on schedule at the end of 2012, the capital gains rate will return to 20 percent. Also at the end of 2012, dividends will lose their special status and be treated like wages and interest -- subject to a top rate of 39.6 percent. On top of all that, the healthcare reform legislation enacted in March 2010 will impose a new Medicare tax on net investment income beginning in 2013 to the extent income exceeds $200,000 for single individuals or $250,000 for married couples filing jointly.
Table 2.pdf
(3) Inflationary gains are not real income and should not be subject to tax. The relative stability of the price level over the past three decades has greatly reduced concerns about the highly detrimental effects of inflation on the operation of the income tax. But even at low levels, inflation overstates returns to capital. One manifestation of this problem is the taxation of inflationary gains as if they represented appreciation in real value.
That really doesn't back up Jr's claim that his investment (wealth) is double taxed does it?