General Discussion

SunSeeker

(58,245 posts)

35. I think it should be a progressive scale.

Tue Aug 14, 2012, 04:00 PM

Aug 2012

It should start at close to zero for folks like an elderly couple living off a nest egg, going up progressively as investment income goes up. But whatever the rate, it should be higher than it is for that same amount of income generated by labor.

And I agree, 50% did work for decades, ushering in huge growth. When capital gains are taxed at relatively high rates, it ENCOURAGES re-investing the gains back into the business (e.g., hiring, R&D, construction) since otherwise the money would be taxed. The system the way it is now encourages taking money out of a business and stashing it in foreign accounts.

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Capital gains should be taxed HIGHER than labor. [View all] SunSeeker Aug 2012 OP

Excellent post. If work is so marvelous, why is income hifiguy Aug 2012 #1

Thanks. I wish I heard more people saying that. SunSeeker Aug 2012 #3

You expressed this in a way that many people should hear. Excellent OP. Thanks for writing that way. freshwest Aug 2012 #15

Well said.. The number 66.6 % comes to mind. russspeakeasy Aug 2012 #2

I like how you think. SunSeeker Aug 2012 #8

Love that. nt Live and Learn Aug 2012 #100

Fabulously said! K & R DonRedwood Aug 2012 #4

And dividends should be taxed at least as much as interest on indepat Aug 2012 #5

Yes, and for the same reasons. SunSeeker Aug 2012 #6

One of the classic lines ... 1StrongBlackMan Aug 2012 #7

But WTF else are the rich going to do with their money? SunSeeker Aug 2012 #11

There has to be a balance between risk and reward. Flatulo Aug 2012 #29

I think it should be a progressive scale. SunSeeker Aug 2012 #35

Do you remember there used to be different rates for long-term and short-term cap gains? Flatulo Aug 2012 #36

Yup. And I think those "lightning trades" should be taxed. SunSeeker Aug 2012 #46

There is an SEC fee when mere humans sell stock. BadgerKid Aug 2012 #104

KRd ozsea1 Aug 2012 #40

If one loses all the money, one can deduct the loss ($3,000/year with option to coalition_unwilling Aug 2012 #48

90% would be an incentive to find a real investment, mbperrin Aug 2012 #56

How does a 90% tax cause people to "lose all the money"? n/t Taitertots Aug 2012 #73

Any investment can go bad. With a top possible return of only 10%, Flatulo Aug 2012 #86

I raised that point with the usual rw know all about riches crowd ... 1StrongBlackMan Aug 2012 #45

as a practical matter, all forms of income should be taxed the same way. unblock Aug 2012 #9

Can't the game playing be taken care of with better tax law enforcement? SunSeeker Aug 2012 #12

i'm reluctant to put a number on it without crunching a lot of data.... unblock Aug 2012 #63

While I don't necessarily disagree with you drmeow Aug 2012 #20

yes as far as salary goes, no as far as bonus, or at least what bonus would become. unblock Aug 2012 #66

I disagree taught_me_patience Aug 2012 #10

Why? SunSeeker Aug 2012 #13

Perhaps because the outcome would be the same for the US Treasury? freshwest Aug 2012 #19

More consumer spending helps the US Treasury. The rich hoarding...not so much. SunSeeker Aug 2012 #22

Yes, and I need to qualify that it's not a generational thing in whole. freshwest Aug 2012 #32

That claim has always irritated me drmeow Aug 2012 #24

Agree with all! And money is a symbol of energy. Hoarded, its usefulness disappears. freshwest Aug 2012 #44

I wish Nordquist would pull a Breitbart drmeow Aug 2012 #111

No. They're only taxed on the profit, dividend, increase like other income. SharonAnn Aug 2012 #106

Sure. But they don't frame it that way. I didn't say I agreed. Drmeow explained it best. freshwest Aug 2012 #108

Because taxing small investment income higher than labor HooptieWagon Aug 2012 #25

Certainly it could be done progressively to account for those situations. SunSeeker Aug 2012 #30

Then retirees would incorporate... HooptieWagon Aug 2012 #78

Nope, they can pay themselves a salary for managing their investment. SunSeeker Aug 2012 #83

K and a great big R Scuba Aug 2012 #14

I believe the taxing power should be used to affect behavior aint_no_life_nowhere Aug 2012 #16

Yes, it used to be done that way. Isn't that what tax credits are about? freshwest Aug 2012 #47

What happens when a party you don't like gets elected Nuclear Unicorn Aug 2012 #74

You are right that taxing power affects behavior. dkf Aug 2012 #77

If they move their money offshore, tax the hell out of their US derived income aint_no_life_nowhere Aug 2012 #101

I used to think that screw you attitude would work but look at what happens when you are hostile to dkf Aug 2012 #102

Wealth should be taxed, not just income. reformist2 Aug 2012 #17

Agreed. The estate tax is vital to preventing an oligarchy. nt SunSeeker Aug 2012 #18

Yes, and the Founding Fathers agree with you. freshwest Aug 2012 #49

+1 a2liberal Aug 2012 #105

Yes, indeed! FiveGoodMen Aug 2012 #21

I disagree. HooptieWagon Aug 2012 #23

I agree with this approach. berni_mccoy Aug 2012 #27

Yes, exactly. HooptieWagon Aug 2012 #41

Which cuts out the speculators going for the quick buck, right? freshwest Aug 2012 #52

short term (less than a year) investments Mosby Aug 2012 #31

Why? SunSeeker Aug 2012 #34

Okay. HooptieWagon Aug 2012 #37

I'm thinking of incorporating as a dividend generating corporation and making myself soul owner Xipe Totec Aug 2012 #26

YES! hedgehog Aug 2012 #28

"Capital gains should be taxed HIGHER than labor." yesphan Aug 2012 #33

Excellent OP - K&R nt TBF Aug 2012 #38

It's UNERANED income, damn straight it should be taxed higher! n/t arthritisR_US Aug 2012 #39

But, but ... then no one would invest!!!! JoePhilly Aug 2012 #42

What about estate taxes? TahitiNut Aug 2012 #43

Excellent points. SunSeeker Aug 2012 #50

They should be infinitely, progressively taxed. This assures that the productivity that $ represents Egalitarian Thug Aug 2012 #61

While this is essentially true, it's unfair to old folks Warpy Aug 2012 #51

Of course, that's why all income taxes should be progressive. SunSeeker Aug 2012 #53

Republican screams are a heavenly chorus to me. And Republican tears would mbperrin Aug 2012 #58

Not if it's progressive. A progressive tax rate that starts at the same rate as earned income and Egalitarian Thug Aug 2012 #62

In my day, it was called "Unearned income" Courtesy Flush Aug 2012 #54

Yes. I should say unearned income should be taxed higher than labor. nt SunSeeker Aug 2012 #55

How would you treat capital losses? badtoworse Aug 2012 #57

You play, you take the risk. That encourages actual investment as opposed to gambling as it is now. Egalitarian Thug Aug 2012 #65

Good question. DocMac Aug 2012 #67

This makes so much sense. Very well stated! gtar100 Aug 2012 #59

What about retirement accounts? OKNancy Aug 2012 #60

Everyone should be careful about their investments Canuckistanian Aug 2012 #88

They should be progressively taxed on the money as it is pulled out. SunSeeker Aug 2012 #97

Awesome post... Kalidurga Aug 2012 #64

Why is work taxed at all? Is there really no better tax system out there? progress2k12nbynd Aug 2012 #68

We could tax property, sales, wealth, or just tax everyone the same amount Taitertots Aug 2012 #75

In a better world the 15% would be in addition to money taxed on actually earned income 1-Old-Man Aug 2012 #69

Please tell me how that policy attracts global equity? dkf Aug 2012 #70

You attract global equity by having a strong, stable economy. SunSeeker Aug 2012 #76

We are stable for now because the rest of the developed world has obligated themselves above the US. dkf Aug 2012 #79

We're already at the mercy of the markets. SunSeeker Aug 2012 #82

But not in their crosshairs... dkf Aug 2012 #85

It happened becuase we invested in infrastructure & manufacturing SunSeeker Aug 2012 #95

That is the problem with this country. It does not value LABOR! Drahthaardogs Aug 2012 #71

I think it should be taxed the same 4th law of robotics Aug 2012 #72

I agree that both should be taxed at a progressive rate. SunSeeker Aug 2012 #81

Yes. Exactly. lumberjack_jeff Aug 2012 #80

When you have a 401k that you have deaniac21 Aug 2012 #84

If you're not rich, your taxes should be pretty low. SunSeeker Aug 2012 #96

Any money you make off a 401k is a capital gain deaniac21 Aug 2012 #110

Right you are Canuckistanian Aug 2012 #87

Thank you for this. AllyCat Aug 2012 #89

k&r Starry Messenger Aug 2012 #90

Logic aside, the RELIGION of Republicans is to "starve the beast" Spitfire of ATJ Aug 2012 #91

When I bring this up with right wing friends(I know, but I live in Kansas) aka-chmeee Aug 2012 #92

Remember Cain's 9 9 9 plan. airplaneman Aug 2012 #93

I got nauseous every time Daddy Bush said "captial gains tax cut" nightscanner59 Aug 2012 #94

Rather, it should be taxed with a progressive tax table. Not the flat 18% or lower. jerseyjack Aug 2012 #98

Of course. All income taxes should be progressive. SunSeeker Aug 2012 #99

indeed a2liberal Aug 2012 #103

So obvious we shouldn't have to say it out loud duhneece Aug 2012 #107

Money does die Coyote_Bandit Aug 2012 #109