Capital gains & income averaging.

Discussion in 'Economy' started by Supposn, Jan 28, 2012.

  1. Supposn
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    Supposn Senior Member

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    Capital gains & income averaging.

    Long term capital gains are not economically more or less beneficial than incomes derived from entrepreneurs’ steadily nurturing and reinvesting into their enterprises.

    I am not opposed to speculators but I’m opposed to using tax policy to favor any business model over others. Unlike the proponents of the long term capital gains tax loopholes, I prefer our government promote transparent open markets that we all may be able to trust.

    Refer to the topic “Capital gains income’s tax discount is unjustified”, posted at 11:02, April 16, 2012.

    There was an “income averaging” provision within our income tax regulations that mitigated progressive tax rate’s excesses when applied to the filing’s year’s taxable income.
    This tax reduction rewarded but was not limited to wealthy investors or those that sold their homes. It benefitted lottery or quiz program winners, sport or entertainment figures, inventors or anyone else that hit ANY KIND of financial jackpot within the taxable year for which they were filing an income tax return. It compensated those who were lucky or daring or devoted years for study or practice of their chosen professions.
    It was of no particular benefit to those with comparatively level annual incomes; (such as a Buffett or Romney or your mailman).

    I advocate elimination of the long term capital gains loophole and restoring the income averaging,

    Respectfully, Supposn
     
  2. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    why not eliminate all taxes on business activity so businessmen will make all decisions capitalisticially, i.e., based on improving our standard of living rather than on what some idiot soviet liberal bureaucrat guesses will serve some special interest.
     
  3. Supposn
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    Supposn Senior Member

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    Edward Baiamonte, if a nation taxes any net incomes, it should tax all net incomes.

    I’m a proponent of keeping the top rate of corporate income taxes equal to the top rate of individuals’ income taxes.
    Historically it’s been our experience that otherwise entrepreneurs declare little or no personal incomes but they’ll live very well upon their enterprise’s expense accounts.

    Respectfully, Supposn
     
  4. California Girl
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    California Girl BANNED

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    Good plan! Chase all our high earners out of the country! Great! Do that! See how your taxes skyrocket to pick up the slack.
     
  5. Supposn
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    Supposn Senior Member

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    California Girl, there’s a logical fault within your message.
    If U.S. investors are earning consistently high incomes in the USA, why would they wish to leave our nation?

    Respectfully, Supposn
     
  6. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    why not eliminate all taxes on business activity so businessmen will make all decisions capitalisticially, i.e., based on improving our standard of living rather than on what some idiot soviet liberal bureaucrat guesses will serve some special interest.[/QUOTE]


    why not eliminate all taxes on business activity so businessmen will make all decisions capitalisticially, i.e., based on improving our standard of living rather than on what some idiot soviet liberal bureaucrat guesses will serve some special interest.[/
     
  7. Supposn
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    Supposn Senior Member

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    Beecause the nation requires tax revemd







    2to trh
     
  8. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    if I disagreed I'll pay you $10,000.

    What you want is to eliminate all business tax, since tax cost is passed on like any other cost, so that business can make economic decisions and end the recession rather than tax avoidence decisions.
     
    Last edited: Jan 30, 2012
  9. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Clinton raised the long term cap gains tax rate to 28%, and nobody really cared. The economy took off anyway, and we had high GDP growth and good job creation. The Gingrich lead repub Congress lowered it down to 20% in 1997 and the economy continued to boom. And of course Bush lowered it to 15% in 2003 after a recession and the 9/11 attack and the economy picked up significantly. Many economists would credit the CG rate cut as at least a factor. Point is, sometimes it matters more than at other times.

    That rate is going up to 20% in 2013 anyway, under current law. But the real question is whether or not raising that rate to match the ordinary marginal tax rate would have a deletorious effect at a time like this. I look at the expected increase in revenue relative to the possible hit to the economy and have to believe it's just not worth it for now. Banks require collateral before they make business loans for startups, which is where most new jobs come from. Angel investors are needed, you don't want to disincentivize them at a time when the economy is struggling.
     
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  10. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    yes you disincent when you tax capital gains leaving less capital for new ventures like Apple Google HP Intel etc etc.

    In the industry they say they need as many shots on goal as possible.

    The liberal, in his blind hatred, envy, and ignorance is forced to disregard this obvious fact.
     

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