A question about tax rates

Discussion in 'Politics' started by Ravi, Sep 19, 2011.

  1. Ravi
    Offline

    Ravi Diamond Member

    Joined:
    Feb 27, 2008
    Messages:
    81,335
    Thanks Received:
    12,695
    Trophy Points:
    2,205
    Location:
    Hating Hatters
    Ratings:
    +29,785
    Why is income taxed differently and why is this not seen as an unfair situation?

    For instance, if you earn a pay check or are self employed you are taxed somewhere between 10% and 35%.

    Yet if you earn your income through investments you are taxed a flat 15%.

    :eusa_eh:
     
    • Thank You! Thank You! x 1
  2. RDD_1210
    Offline

    RDD_1210 Forms his own opinions

    Joined:
    May 13, 2010
    Messages:
    14,642
    Thanks Received:
    1,295
    Trophy Points:
    205
    Ratings:
    +2,002
    Blah blah....class warfare

    blah blah....job creators

    That should sum it up.
     
    • Thank You! Thank You! x 1
  3. WillowTree
    Offline

    WillowTree Diamond Member

    Joined:
    Sep 15, 2008
    Messages:
    68,148
    Thanks Received:
    10,166
    Trophy Points:
    2,030
    Ratings:
    +14,720
    because the income that was invested has already been taxed once.
     
  4. boedicca
    Offline

    boedicca Uppity Water Nymph Supporting Member

    Joined:
    Feb 12, 2007
    Messages:
    41,799
    Thanks Received:
    12,774
    Trophy Points:
    2,250
    Location:
    The Land of Funk
    Ratings:
    +22,794


    The government logic is that it's the difference between income and at risk capital.

    Income is owed as earned. Capital can be completely lost, which happens more than you realize.

    The lower tax rate on Cap Gains is due to the long term nature of investments and their importance to economic growth (which enables income producing jobs).

    IMO, income taxes should be low and the same flat rate for everyone, and capital gains should not be taxed. The income which produced the capital has already been taxed once. And given the way the government continues to destroy the value of the dollar, taxing gains which are often just barely keeping up with inflation (if that) is adding insult to injury.
     
    • Thank You! Thank You! x 1
  5. Ravi
    Offline

    Ravi Diamond Member

    Joined:
    Feb 27, 2008
    Messages:
    81,335
    Thanks Received:
    12,695
    Trophy Points:
    2,205
    Location:
    Hating Hatters
    Ratings:
    +29,785
    So? Why do you people keep babbling about that? Of course it's already been taxed once and it won't be taxed again. Only the profits will be taxed.

    Now, moving along, where is the fairness in charging on tax rate for one type of income vs. another tax rate for another type of income?
     
    • Thank You! Thank You! x 1
  6. Kiki Cannoli
    Offline

    Kiki Cannoli Have you met my shadow?

    Joined:
    May 27, 2011
    Messages:
    3,047
    Thanks Received:
    839
    Trophy Points:
    48
    Location:
    Really south of the border
    Ratings:
    +839
    Because the rate of return would diminish if taxes increased, thus the incentive to invest/risk also diminishes.
     
    • Thank You! Thank You! x 1
  7. alan1
    Offline

    alan1 USMB Mod Staff Member Supporting Member

    Joined:
    Dec 13, 2008
    Messages:
    18,845
    Thanks Received:
    3,577
    Trophy Points:
    245
    Location:
    Shoveling the ashes
    Ratings:
    +3,769
    Good question.

    Why is some income taxed at 10% and some at 35%? That seems unfair to me.
    What about the income that isn't taxed at all? You know, those 47% that file a return and pay nothing at all. That doesn't seem fair to me either.
     
    • Thank You! Thank You! x 1
  8. RDD_1210
    Offline

    RDD_1210 Forms his own opinions

    Joined:
    May 13, 2010
    Messages:
    14,642
    Thanks Received:
    1,295
    Trophy Points:
    205
    Ratings:
    +2,002
    LOL, is the incentive to work diminished because of the income tax rates?
     
  9. boedicca
    Offline

    boedicca Uppity Water Nymph Supporting Member

    Joined:
    Feb 12, 2007
    Messages:
    41,799
    Thanks Received:
    12,774
    Trophy Points:
    2,250
    Location:
    The Land of Funk
    Ratings:
    +22,794


    If you invest $100 and make a 10% return in 5 years, but the inflation has been over 10% over that same period, why should the government tax your "phantom" profits which haven't even kept up with inflation?
     
  10. RDD_1210
    Offline

    RDD_1210 Forms his own opinions

    Joined:
    May 13, 2010
    Messages:
    14,642
    Thanks Received:
    1,295
    Trophy Points:
    205
    Ratings:
    +2,002
    Look at that. More jealousy of the lower middle class and poor. Way to set your bar high. You jealous of the homeless too? I mean, they get out of paying income AND property taxes.

    Class envy on full display.
     
    • Thank You! Thank You! x 1

Share This Page