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Old 11-19-2011, 04:24 PM
 
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Quote:
Originally Posted by pghquest View Post
Capital gains is taxed at wages and profit AND THEN taxed as Capital Gains. Capital gains taxes are MORE, not less.
Incorrect. If you have $100,000 and you realize appreciation on an asset of $25,000 you do not pay any wage tax on the $25,000. Your making stuff up.
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Old 11-19-2011, 04:31 PM
 
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Quote:
Originally Posted by jdm2008 View Post
Incorrect. If you have $100,000 and you realize appreciation on an asset of $25,000 you do not pay any wage tax on the $25,000. Your making stuff up.
Was it in the same year? Was it spread out?

There is a difference.

If it was in the same year then you pay basically the same rate as earned income. If it wasn't, then you don't.

If I make $50 million in one year I will pay that like I worked for the money.

If I earn that spread out over, say, 5 years, I won't, I'll pay the 15% rate.

Think about that. It's an incentive for long term investment...

Last edited by BigJon3475; 11-19-2011 at 04:40 PM..
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Old 11-19-2011, 04:37 PM
 
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Originally Posted by NJBest View Post
You can go further and say NO ONE PAYS THEIR SHARE.
It would be ridiculous to go that far. Where is it determined that the federal government should take 30-40% of ALL revenues?
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Old 11-19-2011, 04:38 PM
 
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Quote:
Originally Posted by jdm2008 View Post
Incorrect. If you have $100,000 and you realize appreciation on an asset of $25,000 you do not pay any wage tax on the $25,000. Your making stuff up.
Who the hell said anything about wage taxes on $25K? Corporations have to pay taxes on profits, and those profits are paid BEFORE they are passed onto you and then RETAXED as capital gains
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Old 11-19-2011, 04:57 PM
 
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Quote:
Originally Posted by pghquest View Post
Who the hell said anything about wage taxes on $25K? Corporations have to pay taxes on profits, and those profits are paid BEFORE they are passed onto you and then RETAXED as capital gains
That would be you.

Quote:
Originally Posted by pghquest View Post
Capital gains is taxed at wages
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Old 11-19-2011, 05:12 PM
 
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Quote:
Originally Posted by jdm2008 View Post
That would be you.
That would be because you earn a SALARY as the employee of your corporation FIRST, and THAT is subject to wage taxes, and then the profits are diverted to you as the OWNER, and TAXED AGAIN...

Why is it so many of you guys dont understand the real world, and how things work?

Someone invests $200K into a restaurant, they become a SALARIED employee, and they pay wage taxes on those earning.. THEN they sell the restaurant one day for $250K, and the $50K profit = capital gains taxes.

They DID pay wage taxes on their earning, AND they ALSO pay capital gains taxes. THATS DOUBLE TAXED on the same investment!!
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Old 11-19-2011, 05:26 PM
 
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Originally Posted by pghquest View Post
That would be because you earn a SALARY as the employee of your corporation FIRST, and THAT is subject to wage taxes, and then the profits are diverted to you as the OWNER, and TAXED AGAIN...
Salary is deducted as a business expense, it is not taxed twice.

Quote:
Originally Posted by pghquest View Post
Why is it so many of you guys dont understand the real world, and how things work?

Someone invests $200K into a restaurant, they become a SALARIED employee, and they pay wage taxes on those earning.. THEN they sell the restaurant one day for $250K, and the $50K profit = capital gains taxes.

They DID pay wage taxes on their earning, AND they ALSO pay capital gains taxes. THATS DOUBLE TAXED on the same investment!!
In your example the salary you earn as an employee is separate from when you sell the business. Are you really trying to argue that it isn't? It is income derived from different people(customers for the salary and the new owner for the sale) at different times. To argue it is the same income and you are being taxed twice on it is ludicrous. Spend some more time thinking and less time smacking yourself in the face and typing so many explanation points and maybe you will get it.
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Old 11-19-2011, 05:29 PM
 
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Quote:
Originally Posted by jdm2008 View Post
Salary is deducted as a business expense, it is not taxed twice.
HELLO? ANYONE HOME? YOU PAY AN INCOME TAX ON THOSE WAGES RIGHT? The fact that the business deducs your salary doesnt mean you arent paying it.
Quote:
Originally Posted by jdm2008 View Post
In your example the salary you earn as an employee is separate from when you sell the business. Are you really trying to argue that it isn't? It is income derived from different people(customers for the salary and the new owner for the sale) at different times. To argue it is the same income and you are being taxed twice on it is ludicrous. Spend some more time thinking and less time smacking yourself in the face and typing so many explanation points and maybe you will get it.
No its not. The success of a business and the "profit" which is derived from it, comes as a result of YOUR LABOR and YOUR CHOICES.. Bad choices, you earn ZERO, good choices, the restaurant earns a profit so you can sell it at a profit.

Both the taxes, i.e. your income tax liability and the capital gains liability from the profit, comes from the EXACT SAME LABOR!
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Old 11-19-2011, 05:40 PM
 
24,511 posts, read 34,155,305 times
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Quote:
Originally Posted by pghquest View Post
It would be ridiculous to go that far. Where is it determined that the federal government should take 30-40% of ALL revenues?
I'm not saying that it should be at 30% to 40% of ALL revenues.... but a lot of people don't even pay 10% to 15% of their revenues.
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Old 11-19-2011, 05:43 PM
 
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Originally Posted by NJBest View Post
I'm not saying that it should be at 30% to 40% of ALL revenues.... but a lot of people don't even pay 10% to 15% of their revenues.
Agreed, and they tend not to be those who are subject to capital gains tax rates. Majority of them are in the lower and middle income brackets.

To solve the problem the government needs to cut the tax rates, broaden the tax base while cutting spending.

Increasing tax rates do nothing to increase revenues, but many here dont comprehend this fact.
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