Obama is RIGHT about the rich/tax issue!!!!!!

Discussion in 'Politics' started by bucs90, Sep 26, 2011.

  1. bucs90
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    bucs90 Gold Member

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    In an interview, Obama was informed that raising capital gains taxes, historically, have LOWERED the amount of revenue the gov't took in. He responded it's more about fairness. Well, he's RIGHT!! Sure, the rich pay higher rates of INCOME taxes, and 50% of people don't pay income tax at all. And sure, they pay the majority of taxes all together. BUT....the rich, and ANYONE else who recieves capital gains, does pay a lower rate than some are paying in their income and payroll taxes. Two separate taxes all together, as most people don't recieve capital gains at all. So anyone paying capital gains, rich, middle or poor, pay the same low rate. SO..............

    I say Obama is right. No one should pay a rate of income/payroll taxes higher than Warrent Buffett's rate on capital gains.

    Thus, Obama should demand ALL tax rates be LOWERED to the level of the capital gains rate:clap2:

    Great idea Mr. President.
     
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  2. bucs90
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    bucs90 Gold Member

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    In fact, what are capital gains? A return on what you've invested, right? And to be FAIR, others should pay the same rate on the income they get, right?

    Ok. Then we should also tax welfare, food stamps, and all subsidies given out by the government at the same rate as capital gains. After all, those people have made a choice of actions to invest in handouts, thus, to be FAIR that income should be taxed at the same rate as Warren Buffett.
     
  3. auditor0007
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    auditor0007 Gold Member

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    Google Millionaire Begs: "Raise my taxes, please!"

    Google Millionaire Tells Obama: 'Raise My Taxes, Please!' - DailyFinance
     
  4. Charles_Main
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    Charles_Main AR15 Owner

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    Wrong, Regular income is guaranteed. Capital Gains are not. You take a risk then you invest. You could lose money. Is the government going to cover investors losses when they lose money?

    Look you guys just don't get it. Investment is what makes this country go. Own a small Business want a loan? Investors are the ones who make Capital Available for you to borrow.

    Raise Capital gains and you will lower the amount of money being invested in the US. Both by Americans and from abroad. Period.

    If you think it is ok to slow investment right now, then go ahead raise the capital Gains tax. Me personally I don't think so. Not now at least.
     
    Last edited: Sep 26, 2011
  5. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    All these wealthy Democrats offering up to pay more taxes... well then, a 10% surcharge on being a Democrat would serve that purpose...
     
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  6. Shogun
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    Shogun Free: Mudholes Stomped

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    No, you don't get it. Income is income is income. I don't care if you punch a time clock or gamble with investing, the net product is personal income and, as such, should be taxed. We tax gambling winnings as income so you really have to argument to differentiate upon assumed risks to investment.
     
  7. TruthSeeker56
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    TruthSeeker56 Silver Member

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    It's the new liberal mantra....................punish those who take all the risk by investing their money in various forms (stocks, real estate, bonds, etc.).

    The GOVERNMENT takes NO RISK. They just reap the rewards of the work and intelligence of OTHER people.
     
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  8. Dragon
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    Dragon Senior Member

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    He was informed wrongly. This is a myth.

    Do capital gains tax cuts increase revenues? - The Curious Capitalist - TIME.com

    "One of the most cherished beliefs of supply-side zealots is that cuts in capital gains tax rates always increase revenue. To be sure, there are often dramatic upward revenue swings right after the cap gains rate is cut. But that is in part because people can choose when to enter into the transactions that result in capital gains--and they'd be idiots not to hold off a few months if they know the tax rate is about to drop."

    The article goes on to compare revenues from capital gains tax over a full business cycle and to show that, contrary to opinion, longer-term revenues did not increase as a result of a cut in capital gains rates.

    Simply put, the announcement of a cut in capital gains rates radically slows down realization of cap gains as holders of assets keep hold of them until the cut goes into effect. Then it results in a surge of selling as investors rush to take advantage of the lower tax rate. This means that capital gains tax revenues sharply DROP after the tax cut is ANNOUNCED, and then radically RISE after the tax cut is IMPLEMENTED. The net effect of the two is a drop in revenue, because if the assets had sold earlier they would have been taxed at the higher rate.
     
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  9. LordBrownTrout
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    LordBrownTrout Gold Member

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    Capital gains gets taxed as income when selling a company. It's a good idea to have a savvy accountant.
     
  10. Dragon
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    Dragon Senior Member

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    No, that's another myth. The only way it would be true is if all available capital were being invested in productive job-creating enterprise. In that case, an increase in capital gains tax might result in preference for investing the capital elsewhere (even then, capital gains tax would be only one factor among many, including labor costs, access to infrastructure, access to skilled workers, and access to markets, and might not have much effect).

    The reality we face today is that there is a glut of capital, not a shortage of it. As long as consumer demand remains low, there will be limited incentive to invest in any enterprise producing goods and services for sale, and capital gains tax rate won't change that one way or the other.

    Here's what I might like to see down the road, and so far nobody's said anything about that. How about a two-tiered capital gains tax, with a higher rate for sale of financial assets and a lower one for sale of productive assets such as a factory, or for stocks that are held for at least a minimum period of time?
     

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