2016 Postmortem
Related: About this forumAre Tax Rates the Solution?
I've been listening to the debates on whether or not the *Tax Rate* increase the President want or the *Loopholes* arguement the republicrats want actually addresses the problem. I don't think either will actually make any difference except perhaps at the very low end of the spectrum.
Those that make $250,000 to perhaps $750,000 maybe even a million yearly make thier money from actually working... getting out there and running a business... actually making a living. Those above that tend to make their money from other money. In other words from capital gains. Capital gains is taxed at 15%.
The republicans want to do away with capital gains. Something that would entirely benefit the wealthy by nearly eliminating their tax burden. They claim the change would spur business growth. There is no evidence that will happen. In fact, based on the past 30yrs, it would do nothing but increase the pocketbooks of the wealthy and increase the burden for the rest of us.
What if we made changes that counted all income as INCOME and not something else as capital gains does. What if we taxed capital gains at 30% instead of 15%? That one change would make a huge difference in the treasury bottom line. The proposed tax changes by either side does little to increase the tax burden of the wealthy.
Most of the proposals balance spending and revenue for what is essentially, a zero-gain outcome. Little will change... the deficit will go down some, but not as much as we would hope and not immediately. Increasing the capital gains rate will make an immediate impact and long-term, the answer is JOBS. The more we are working and getting GOOD wages, the more we are paying taxes. The more of us paying taxes from good-paying jobs the better for all of us.
Deficit and debt solution? Increase in Capital Gains and Jobs programs.
What do you think?
JustAnotherGen
(31,828 posts)Let's shore up social security . . . I stop paying into SS each year around the May/June Mark. I've earned my 106,800 by that point.
I seriously do not miss the money the first 5/6 months of the year.
kaspar411
(30 posts)The Magistrate
(95,247 posts)jschurchin
(1,456 posts)Tax ALL income at the appropriate rate. If your rate is 15% ALL your income, no matter the source, is taxed at that rate. If it's 35% same thing.
The President should propose that and watch the uber wealthy's head's explode.
WestCoastLib
(442 posts)Somebody with a better understanding of the economics of our country than me would have to see if the math would work.
But, could we say increase capital gains taxes to 25% while keeping the Bush tax cuts? Or what about even lowering taxes by a percent or two with a 10-15% increase in capital gains?
If you pushed for a plan that would significantly increase capital gains while lowering income taxes (even for the "wealthy" by a couple percent, doesn't that completely cut the GOP party's legs out from under them?
I dunno. Perhaps it's not worth it, but I'm not versed enough in the economics to know what the outcome would be.
PoliticalBiker
(328 posts)Raising the capital gains tax to the same level as all other income for the rest of us wouldn't change his investment process and he believes the same for the vast majority of the wealthy. He says it wouldn't hurt them and the country needs it. He believes the ultra wealthy should pay more as a thank you to the country that allowed them to get wealthy
Filibuster Harry
(666 posts)is not the tax brackets but the 15% max tax rate on dividends and capital gains. Dividends, historically, have been taxed at regular rates. Long ago, there were some tax code changes that allowed the first $200 (single) or $ 400(joint) dividends not be taxed. Also, if you reinvested dividends you didn't pay tax on those either. But those have been eliminated years ago.
The capital gains tax has been changed many times. Some times only 60% or 40% of LT capital gains were taxed at regular rates. Other times LT gains were taxed at most 25%.
Those drastic cuts to the capital gains and dividends are the culprit. Which is why I don't understand why such
the big deal to let them expire? They are only going back to rates that have been previously enacted? They are not being raised to levels this country has NEVER seen before.
PoliticalBiker
(328 posts)Dividends need to be counted as income just like Capital Gains. Income is income, no matter where it comes from and should be treated no differently than wages. Treating it as a different kind of money is elitist and unfair. Whether you get it from buying and selling houses, working at a factory, making beads in a corner shop or investing, if you didn't have it and then you get it, it's income and needs to be treated as such.
Filibuster Harry
(666 posts)is taxed at max of 15% and all other income is taxed at regular rates?
qwlauren35
(6,148 posts)A lot of our wealthier seniors depend on capital gains from 401K's for income. They no longer work... I think it's better to put a cap on the capital gains that can earn 15% and above a certain amount, make it 30%.
I also agree that there are people making up to $500,000 who are really WORKING.
PoliticalBiker
(328 posts)... if you are making $500K from retirement funds, you can totally afford it.
If you are making $75K, you are subject to the same tax rate as anyone else at that income level. It can be called Capital Gains, but it really isn't. It's deferred income from WORKING. You earned the money, you just don't pay taxes on it until you withdraw.