No, the capital gains tax is not “taxing the same income twice"

[SunSeeker]

93. It is exactly the point. Why people do stuff is what tax policy is based on.

Tax policy is meant to encourage productive behaviors and discourage destructive ones. Which is why it is so ridiculous to give a lower tax rate on capital gains, coupled with lower taxes on the rich, since it encourages the rich to pull money out of their businesses rather than re-invest it back into their businesses. If taxes on dividends were the same as earned income, Costco would not be paying out all that money as dividends. Instead, it would be reinvesting it in the business. But with dividend rates likely going up in January, I'm guessing they felt they had to do that or face a potentail shareholder class action suit for not letting them get the money at the low rate when they could.

And having a miniscule fractional share of a company is simply not the same as owning a company. You have an investment. It is just a right to collect dividends and later sell the stock, hopefully for gain. You do not have all the rights nor responsibilities of ownership.