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i read the former CEO of vanguard's piece today and have to say that i think he has one valid point regarding taxation:
Is it really fair for gamblers on Wall Street to pay a 15 percent rate when they make a winning investment, and an honest working person — a bricklayer for example — may pay an equal or higher tax on their wages than a gambler? That's absolute absurdity.
Rates may have to be changed, but we also need to look at what is taxed, and how. Dividend income should be taxed at the same rate as ordinary income. As for capital gains, there ought to be some distinction between capital made by people who start businesses, and contribute value to society, and capital made by gamblers on Wall Street, some of whom win. Earned capital income should carry the regular dividend rate, but capital income gains by trading, and particularly short-term trading, should pay a higher tax, even than the present ordinary income rate.
Read more: Bogle: Time for speculators to pay fair tax share - Beaumont Enterprise (http://www.beaumontenterprise.com/business/article/Bogle-Time-for-speculators-to-pay-fair-tax-share-2420385.php#ixzz1hb2li84w - broken link)
look at the numbers:
----our financial system has gone off the rails. It's something we think of as providing capital for new businesses, that will enable people to finance new companies or add to the capital of existing companies. We do that to the tune of about $200 billion a year in financing through Wall Street, or through the financial system. And yet we do some $40 trillion worth of trading every year. I'm selling my investment to you, and you're buying it from me, and it creates no value for society. Indeed, it subtracts value, because the guy in the middle gets his piece.
Many mutual funds turn over 100 percent of their portfolios each year. When I got into this business, it was maybe 18 percent a year. It's amazing.
if the OWS movement was capable of having a point-that should be it-the future is not for gambling.
i read the former CEO of vanguard's piece today and have to say that i think he has one valid point regarding taxation:
Is it really fair for gamblers on Wall Street to pay a 15 percent rate when they make a winning investment, and an honest working person — a bricklayer for example — may pay an equal or higher tax on their wages than a gambler? That's absolute absurdity.
Rates may have to be changed, but we also need to look at what is taxed, and how. Dividend income should be taxed at the same rate as ordinary income. As for capital gains, there ought to be some distinction between capital made by people who start businesses, and contribute value to society, and capital made by gamblers on Wall Street, some of whom win. Earned capital income should carry the regular dividend rate, but capital income gains by trading, and particularly short-term trading, should pay a higher tax, even than the present ordinary income rate.
Read more: Bogle: Time for speculators to pay fair tax share - Beaumont Enterprise (http://www.beaumontenterprise.com/business/article/Bogle-Time-for-speculators-to-pay-fair-tax-share-2420385.php#ixzz1hb2li84w - broken link)
look at the numbers:
----our financial system has gone off the rails. It's something we think of as providing capital for new businesses, that will enable people to finance new companies or add to the capital of existing companies. We do that to the tune of about $200 billion a year in financing through Wall Street, or through the financial system. And yet we do some $40 trillion worth of trading every year. I'm selling my investment to you, and you're buying it from me, and it creates no value for society. Indeed, it subtracts value, because the guy in the middle gets his piece.
Many mutual funds turn over 100 percent of their portfolios each year. When I got into this business, it was maybe 18 percent a year. It's amazing.
if the OWS movement was capable of having a point-that should be it-the future is not for gambling.
So does that apply to me too??? If I trade stocks with income that HAS ALREADY BEEN TAXED, should Big Brother get a whopping slice so he can blow it on worthless cr*p?????
Is it really fair for gamblers on Wall Street to pay a 15 percent rate when they make a winning investment, and an honest working person — a bricklayer for example — may pay an equal or higher tax on their wages than a gambler? That's absolute absurdity.
The 15% rate is for Long Term Capital gains... so it does not apply to the day traders.
It applies to you and I just like anybody else who holds assets for more than a year. In fact, if you are in a low tax bracket, you will pay ZERO taxes on long term capital gains.
All those Wall Street traders that hold an asset less than a year are paying at regular income tax rates.... probably 35%... NOT 15%.
I think that we should pimp our politicians to other countries. We might get some money out of it before the other nations find out that they got the wrong end of the stick! We had better make sure we indelibly stamp all of their bottoms with the words: NO RETURNS!
I have already done the math and result was that the cuts are by far the largest reason why the debt skyrockets
Math obviously was not your strongest subject then. All it takes is a cursory review of federal revenues and federal spending from 1995-2011 to understand that our problem is SPENDING, not REVENUE.
If you tax more, without the constraints of a balanced budget amendment, the government will just blow it, as they always have. When has the government ever "paid down the debt"? Never.
To ask for more tax revenue without defined, absolute spending limits is lunacy and is just throwing away money. I actually would not mind as much if my taxes were increased (despite already paying $500K) if there was a balanced budget amendment and "surplus" was earmarked to retire debt.
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