"the biggest reason for equalizing capital gains rates may be that it would generate a vast amount of additional revenue for the Treasury. The Internal Revenue Service reports that for taxpayers with the top 400 adjusted gross incomes, capital gains in 2008 amounted to an eye-popping average of $154 million for each of those taxpayers, or 57 percent of their adjusted gross income, and this in a year when the stock market plunged. In 2007, it was $229 million each, or 66 percent. Much of the windfall from higher capital gains rates could be offset by cutting the rate on ordinary income. For antitax zealots who vow they won’t accept one more penny of federal tax, all of it could be offset by lower rates on ordinary income. And for advocates of reducing the government deficit at least in part through higher taxes, tax reform is an appealing approach.
Though controversial, this isn’t a new idea. The most prominently successful advocate of a drastically simplified tax code that treated ordinary income and capital gains the same was Ronald Reagan, who made it a centerpiece of his successful 1986 tax reform proposal."
"In the end, the most compelling argument for equalizing tax rates on capital gains and ordinary income may not be economic efficiency, growth incentives, higher tax revenue or reducing the deficit. It’s simple fairness. It’s hard to quantify or put a dollar value on a just society. “I’ve earned both, and in my experience earning income from capital gains is a lot easier than earning ordinary income,” Mr. Burman said. “Why not tax both at the same rate? It only seems fair.”
Treat the earth well: it was not given to you by your parents, it was loaned to you by your children. We do not inherit the Earth from our Ancestors, we borrow it from our Children. ~ Ancient American Indian Proverb
I don't understand why it's so damn difficult for our nation to discuss the fact that corporations pay less money in taxes than most of us and make billions in revenue. That should piss everybody off and that should be easily changed by our current president with much, much support. We should also be able to discuss Romney's tax situation and figure out something that is actually FAIR, fair as in, the concept people on both sides use when discussing taxation in this country.
I really think that this discussion is just pathetic on many levels, and I also find that many, many people are completely ignorant and stupid about the tax code and how it works, yet they believe so strongly that they know what they are talking about. In fact it's some of the loudest people in this debate, who think they know their **** and they don't. It's annoying as ****. Even taking a college tax classes 20 plus years ago doesn't mean you know much about taxes today.
Well, if I understand it correctly, Romney's income is pretty much based on past investments. One of the incentives for investors to invest is a reduced tax rate. I don't think he did anything illegal or shady.
But this is just another example of how the playing field is rigged to the point where the rich get richer. It takes money to make money. Money snowballs. Those of us in the middle out here, without a whole lotta money to begin with, we're kinda screwed. If you are born into money (or hit the lottery, LOL) you have the advantage of being able to afford higher education, tax deductions, etc., and the beat goes on.
I don't think Romney's a bad guy for making money while following the rules. It's the rules I have a problem with. Level the playing field. Under the current system, the American dream is all but gone for those yet to achieve it.
Where Romney screwed up was saying he didn't make that much money at his 1-2 hour speaking engagements even though one speaking engagement payment is more than the annual average income of the SC citizens.
This has probably already been brought up on this thread. I just didn't have time to start reading at the beginning.
It's GREAT to be me. --- "45% liberal/55% conservative"
Diplomacy is the art of saying 'nice doggy" until you can find a gun.
Thank you, Quazi!