Let's raise Capital Gains to 50% for all gains above $250,000 (unemployed, wage, administration)

[Suncc49]

Originally Posted by subsound

The top income tax rate was 50% or above from WW2 to 1986.

Wasn't the post war period when we paid off all that debt and had massive economic expansion?

Monetary System was different back then too... We didn't have the leveraged Fiat style system until Nixon.

[hnsq]

Originally Posted by gwynedd1

Agreed. I am all for making capital gains taxes 0. However we need to recover the tax losses from the free lunch finance is getting from fixed assets. We need to split up human capital and assets into two different income classes.

I am a big fan of a flat consumption tax instead of capital gains or income/payroll. Simply treat financial products the same as any other good under a flat consumption tax system.

[Roadking2003]

Originally Posted by VTHokieFan

For the middle class investors, capital gains will be lowered to 10%, the rich will have their capital gains raised to 50%. Thoughts?

Why not make it a 100% tax. That way you could discourage all long term investments.

Maybe you haven't read too much about what happens when you over tax any income.... it just goes away.

[Roadking2003]

Originally Posted by Mr. Mon

How about just taxing capital gains at the same rate as actual earned income?

Why should my labor be taxed higher than than the return on my investments?

It's typically done to encourage longer term investment.

[Roadking2003]

Originally Posted by subsound

The top income tax rate was 50% or above from WW2 to 1986.

Wasn't the post war period when we paid off all that debt and had massive economic expansion?

And nobody paid the top rate.

The top marginal rate is meaningless.

[Sunnysee]

No way, raise Cap gains that dang much! Sheesh "jessie James used a gun!" sort of thing.

I'll never support the move to STEAL that much of other folks' hard-earned money.

I have a great idea. Let's live within our means, as a country just as millions of us do in our personal lives.

[Roadking2003]

Originally Posted by hnsq

Got it.

Why on earth would anyone pay it though? Even as a middle class citizen, I would open a company internationally to save on taxes if capital gains was raised. You can guarentee the wealthy would do so as well. For this reason, raising capital gains to 50% would decrease total tax revenue to the federal government.

Did everyone forget that there are two rates? short and long term capital gains????

short term is taxed the same as wages.

The Long term capital gains tax rate is 15% or zero. Low income people pay ZERO long term capital gains taxes. Higher income people pay 15%.

The objective is to ENCOURAGE long term investments.

[pghquest]

Originally Posted by hotair2

There are those that will say this will stop investment, which is hogwash. The very rich will either have to stuff their money in mattresses or the will have to invest. Those are the only two choices.

Neither one of which generates TAX REVENUES

[rw47]

Originally Posted by Roadking2003

Why not make it a 100% tax. That way you could discourage all long term investments.

Why not 200 percent? Think of the revenue we could get!

[pghquest]

Originally Posted by hotair2

Well lets see. IF you mae 10 million a year from capital gains and the govt. taxes that income at 50%, which leaves 5 million a year of income. That is cutting it close. I don't many people who live off of 5 million a year. That is near poverty levels.

Thats not how it works but no surprise you think that way

If you make $10M a year from capital gains, and you pay a 15% rate, you pay $1.5M, and keep $8.5M

If that rate goes to 50%, and you still make the $10M a year, you actually make sure you dont cash out on that $10M, thus rolling it over to another deal, thus the taxes paid is ZERO... You keep $10M, the government gets NOTHING!!!