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Lol, you just don't get it, do you. I quoted a ridiculous loophole in the tax law which allows certain people to pay capital gains tax on their earned compensation.
Um... They pay capital gains tax on it because they actually ARE capital gains. If you can't comprehend that, no one can help you.
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Irrelevant. When there is a risk that this compensation can become negative 1 billion than let me know.
You remind me of Obama who insisted that health insurance premiums were going to fall by 3,000%.
That is correct, HOWEVER, as your income increase, your effective rate converges with your marginal rate. You can agree on that, no?
Yes, but it would take a hell of a high salary/wage income to get to the convergence point (I ran the numbers and it's over $20 million for the 37% bracket). And when you get to that amount, it's frequently not paid in straight salary/wages but paid in methods which do not drain so much of the business's cash flow, some or all of which may be a share of the capital gains.
My point still stands. The vast majority of taxpayers, 99.9%, will have a lower effective federal income tax rate than that of their top marginal income tax bracket.
Um... They pay capital gains tax on it because they actually ARE capital gains. If you can't comprehend that, no one can help you.
You remind me of Obama who insisted that health insurance premiums were going to fall by 3,000%.
No, it is a fee for work performed. How this fee is paid for is irrelevant. Work wages are supposed to be taxed at regular income tax rates.
Removing this loophole would not change anything in regards to the capital gains tax rates.
Why are we talking about healthcare premiums now, another distraction/diversion?
But FWIW I also agree that EITC should be removed or revised - I'd prefer it be removed.
Most poor parents don't understand that their "refund" really isn't a refund in my experience. They really think they are paying a lot of taxes (lol but they do) or are getting something back they are paying when they are not.
Note, the last few years I actually have gotten a tax refund mostly due to the credits for repairs/maintenance and management of my rental properties. I've never gotten a "refund" though like I used to get when my son was preschool aged and I'd get $6-10k back every year during his toddler years to kindergarten. I got EITC at that time since I wasn't married even though I lived with my current spouse. I used the "refund" to partially pay his taxes. But the EITC and daycare credits is what caused me to get back a lot. I used to spend $8-$10k per year on daycare for him and so that would reduce my income enough to qualify for EITC. I understood this and took the money but most people/parents don't understand that or care about it and honestly I didn't care either. You want to give someone $8-$10k or more for free and they're going to take it lol. I do think it needs to be removed since it is just something leftover from welfare reform in the 1990s. I also remember Obama took away the huge credits I used to get for daycare expenses. After he became president, I no longer got those large tax refunds. It is a reason why I loved GW Bush - I got big tax refunds and stimulus checks from Bush. Will always have a fondness for him because of the good memories
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