A question about tax rates

Ravi

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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:
 

RDD_1210

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Blah blah....class warfare

blah blah....job creators

That should sum it up.
 

WillowTree

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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:
because the income that was invested has already been taxed once.
 

boedicca

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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:


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.
 
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Ravi

Ravi

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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:
because the income that was invested has already been taxed once.
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?
 

alan1

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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:
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.
 

RDD_1210

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Because the rate of return would diminish if taxes increased, thus the incentive to invest/risk also diminishes.
LOL, is the incentive to work diminished because of the income tax rates?
 

boedicca

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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:
because the income that was invested has already been taxed once.
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?


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?
 

RDD_1210

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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:
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.
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.
 

flacaltenn

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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:
Actually not quite true.. Cap Gains have both short and long term rates. And I believe they are already indexed somewhat to income (or WERE before the Bush cuts).

The reason for this is when you make an investment, you've PAID taxes on that money already. Not fair to tax proceeds from that principle at the same rate as some totally NEW income like salary..

It's to ENCOURAGE RISK.. Something that's a totally foreign concept to lefties..
 
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Kiki Cannoli

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Because the rate of return would diminish if taxes increased, thus the incentive to invest/risk also diminishes.
LOL, is the incentive to work diminished because of the income tax rates?
I think I understand your sarcasm and don't disagree. However your assumption that I condone the current tax practices is false. And yes, rate of return is a consideration when choosing to invest.

All income should be taxed at the same flat rate regardless of children in household, marital status, income level, place of residence, charitable contributions, business size...the business of tax revenue is a business which should limit subjective collection processes.
 

RDD_1210

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Because the rate of return would diminish if taxes increased, thus the incentive to invest/risk also diminishes.
LOL, is the incentive to work diminished because of the income tax rates?
I think I understand your sarcasm and don't disagree. However your assumption that I condone the current tax practices is false. And yes, rate of return is a consideration when choosing to invest.

All income should be taxed at the same flat rate regardless of children in household, marital status, income level, place of residence, charitable contributions, business size...the business of tax revenue is a business which should limit subjective collection processes.
And when you say income are you including income derived from capital gains and investment?

Because if someones primary means of making an income is through capital gains they are not going to suddenly stop investing to earn their money. Just like someone doesn't stop working if the income tax goes up.
 

Big Black Dog

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Everybody in America should be taxed at the same rate across the board. I think 10% would be a fair amount. That way, everybody has a dog in the hunt. No exemptions. No deductions. No credits for earned income. Straight 10% for everybody no matter how much they earned.
 

WillowTree

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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:
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.










It is not fair.
 

iamwhatiseem

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The top question that should be prevalent on everyone's mind:
Why is over half of all income in America not only not taxed at all - but these people have a negative tax liability - receiving money from the IRS.
 

alan1

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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:
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.
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.
I said nothing of the sort.
Please try to do better than misinterpreting what I said.
 

Kiki Cannoli

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LOL, is the incentive to work diminished because of the income tax rates?
I think I understand your sarcasm and don't disagree. However your assumption that I condone the current tax practices is false. And yes, rate of return is a consideration when choosing to invest.

All income should be taxed at the same flat rate regardless of children in household, marital status, income level, place of residence, charitable contributions, business size...the business of tax revenue is a business which should limit subjective collection processes.
And when you say income are you including income derived from capital gains and investment?

Because if someones primary means of making an income is through capital gains they are not going to suddenly stop investing to earn their money. Just like someone doesn't stop working if the income tax goes up.
Yes.

Nobody said investing would come to a halt, that is an extreme conclusion you are attempting to draw. If investors were required to pay at a rate of personal income than the risk becomes less attractive and yes, some investors would steer away from new technologies (as an example) as the rate of return no longer fits their decision making criteria.
 

RDD_1210

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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:
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.




It is not fair.
You're free to start paying taxes anytime if it bothers you so much.
 

DontBeStupid

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The top question that should be prevalent on everyone's mind:
Why is over half of all income in America not only not taxed at all - but these people have a negative tax liability - receiving money from the IRS.
False premise means no one will answer your question.
 

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