FACT: Why the Rich should pay LOWER tax rates than the Poor

[OohPooPahDoo]

You lost 3-1/2 out of the last 4 elections. The future is not shaping up in your favor.

Here is a clue for you retards in The Sixth Sense video below. Replace the word dead with stupid.

Stop spamming my thread with stupidity.

If you have nothing worthwhile to say, don't say anything.

Back on topic -

The middle class can invest money, and reap the benefits of lower capital gains tax as well. Investments aren't just things allowed to the rich.

So exempt the first 20K of capital gains from tax to benefit small investors. Stop subsidizing the rich.

The gains of any small investor who puts there money in an IRA are already exempt.

 

[OohPooPahDoo]

My point was that capital gains taxes are taxed lower because they aren't guaranteed. Income is guaranteed; capital gains aren't.

Wrong again. Income is not a guarantee in this country. Perhaps you have us confused with the former Soviet Union.

Capital gains are also a form of income.

You're not going to sell the same investments ever year for the same gains.

You don't have to sell any investments at all, dividends are taxed at the capital gains rate.

 

[Toronado3800]

Lately I've heard the argument that the rich are paying a lower effective tax rate than the poor used quite a bit. And while that is true, there is a very good reason for that.

Here's why there is nothing wrong with the rich actually paying a lower effective tax rate than the average worker. And no, it has nothing to do with the fact that 20% of the wealthiest Americans are already paying for 70% of all federal taxes. (Although that is also true. )

RTS: Thomas Sowell vs Occupy Wall Street and Obama - YouTube

-- For those that would rather not watch the video --

Most of the income earned by the wealthy are capital gains, and not taxed at the same rate as regular income because they aren't present at any given year.

For example, you may have stock options that have been accumulating for 5 or 10 years. The year you cash these out, your income will spike up. But only for that year. Capital gains tax takes into account that the income you've just cashed out on has been earned throughout a period of time.

Which is why it is taxed at a much lower rate. Combine that with the income they earned that is taxed at the highest rate, and that's how you have the rich paying a lower effective tax rate. Which in reality, is perfectly fine.

To confess I did not watch the video. If you have a transcript I will read it. I must read for some reason.

The catch may be in the word "should". Don't think in terms of "they should" but in terms of "they better". Ideally you and I and the super poor or rich would not need to pay taxes. But this is the real world.

First, the money needs to come from somewhere.

Second, after I earn about $60k in a year the rest is pretty unnecessary for survival. (yes it SHOULD be mine)

Third, if I earn only $20k and have anything like a family to support I really NEED all that money. SHOULD I be left to starve after paying my fair share of taxes? I dunno. Obviously the $20k fella isn't earning his keep but this whole Christianity based country thing is kinder and gentler than I am personally.

A couple human nature quirks come into play.

A: What kind of society do you want? Folks are a jealous lot. Mexico has an upper class but they have to send their kids to school with armed escorts so the lower class doesn't kidnap them for ransom. Damn human nature. Human nature also makes socialism not work so we need to let folks earn money and fear not earning it.

B: you just can't tax away ALL the money I earn over $60k. As a human I am liable to stop working entirely. Heck, gimme and the Rolling Stones a chance and I'll declare myself a French citizen or something like that to pay lower taxes. So obviously there is a limit to what you can tax me.

C: and most "out there".

I am not dead set the stock market and the ways the ultra rich earn money are absolutely best for the economy. The upper middle class does produce, while I don't produce burgers anymore I do SOMETHING good for America at work. Once you are dealing with the top 1% it becomes a tangled world of "too big to fail" and finding ways around economic regulations. As we have seen recently bankers do not know how to run banks and are thus is very dangerous.

Thanks for your time and the polite conversation.

 

[KissMy]

Stop spamming my thread with stupidity.

If you have nothing worthwhile to say, don't say anything.

Back on topic -

The middle class can invest money, and reap the benefits of lower capital gains tax as well. Investments aren't just things allowed to the rich.

So exempt the first 20K of capital gains from tax to benefit small investors. Stop subsidizing the rich.

The gains of any small investor who puts there money in an IRA are already exempt.

Oh wow that IRA chicken feed. You can't use that money to invest in your small business tax free. You have to invest in stocks of the rich corporations. Hell make the first $100k tax exempt or low tax rate. But bribing the government to create an un-level playing field that benefits the rich is communist corruption by Plutocrats. It is clearly not the Democratically elected Republic that made us the greatest.

The fact is the middle class needs a tax cut or we must raise taxes on the rich or both. Currently the middle class is subsidizing the rich. The government has set up an uneven playing field by taxing the rich far less than the middle class.

- KissMy (middle class job creator) produces widgets & gets taxed at 28%.
- Mitt Romney (entitled rich pussy) produces widgets & gets taxed at 13%.
Now Romney can produce widgets & sell them for profit cheaper than KissMy. KissMy middle class ass goes under & becomes KissMy poor broke ass. Romney acquires KissMy widgets from bankruptsy for a fire-sale price of 10 cents on the dollar. He has taken over the assets & market thus has more tax revenue but still lower tax rates enabling him to unfairly compete & destroy another middle class job creator.

We are also forced to subsidize the rich's flood insurance. They are the ones who own most of the beech homes & benifit the most from that massive subsidy. To top it off we had to bail out their banks. All accounts are FDIC insured up to $250K. But the rich had much more than that in their accounts. $2.5 trillion of their bad bets & debts got rolled onto the ballance sheet of the Federal Reserve where they remain to this day even as they lie & say they paid us back.