How do you folks feel about capital gains and dividend tax?

[calteacherguy]

I don't like it, since I own stock...and I'm by no means wealthy. When I decide to sell, I don't see why I should have to pay capital gains tax. On the other hand, if a millionaire sells their stock, then yes I think they should pay capital gains. What do you think?

[More Than A Feeling]

1. Those capital gains are income that hasn't been taxed yet.

Why should that income escape tax in an "income tax" system?

[napi21]

2. No, I don't like it when I get that damn 1049 in January, but I feel

if I made the money, then I should pay the taxes on it. I guess my only problem with the way it is, is because I own some mutual funds, so I owe taxes on money that I didn't take out. I'd prefer the tax only be levied on the money when you take the profits, but I own so little, we're not really talking about a tax of more than $100.

[silverweb]

3. Unearned wealth.

Why should the rich get richer by virtue of the fact that they're already rich?

The tax rate on unearned investment income should be 90%.

[drm604]

6. Not everyone who owns stock is rich.

I'm not against a capitol gains tax but 90% across the board is way too much. It should be taxed progressively like other income. Many people's retirement funds are in 401k plans.

[silverweb]

11. Okay, you're right about that.

I'll go with a progressive tax. :)

[puerco-bellies]

4. Income is income

If you have actually cashed out in profit then you should be taxed. If the market value has increased but you have not liquidated your position you should not be taxed on what is a "theoretical", value.

[nosmokes]

5. I own stock and capital gains should be taxed higher *caveat*

the caveat that our tax system is so fucked up right now that nothing makes sense. But for sure, right now the tax code is written to reward wealth and punish work, which is totally backasswards. There's no need for work to be punished, and how the hell can you reward wealth if it's not generating jobs instead of simply more wealth?

[Tandalayo_Scheisskopf]

7. If wealth was...

Doing what it is supposed to be doing, generating capital investment in facilities and infrastructure, as it should be in a healthy and regulated capitalist economy, then I might be willing to entertain remaining status quo on the way things are running now. But it is not. Instead, we have what any Economics 101 student *should* recognize as a broken system. I emphasize should, because our economics are so screwed up by that U. of Chicago, Uncle Miltie Friedman/Leo Strauss bullshit and up is down.

So, it is time to tax the fuck out of the wealthy and put that money into infrastructure and development of new industries. NOT the bailing out of the rich.

[cornmak]

8. The rates don't need to be raised...

The tax system needs to be simplified to eliminate all of the grey areas and loopholes available to the wealthy. I have a couple of very wealthy friends who pay less than 10% on their income because of these loopholes. The really ridiculous leak in our tax system is the complience expense. It costs the wife and I about $100 a year to get our taxes done. It cost the small business I work for, 10 people, almost $2000/year. You plug up those leaks and you will capture much more tax revenue.

I'm a big supporter of a progressive flat tax type system where <b>all</b> income over say $20K is taxed at 5%, everything over $35K 10%, everything over $50K 15%, and 20% for everything over $75K. The only deduction I would allow, and it would be small, would be for medical. A big plus to this type of system is that you really don't need to pay a tax service to do your taxes because it is so much simpler. The money you would normally pay them isn't deducted from the tax revenue that you give to the government.

[harun]

9. It should not be lower than the income tax rate, setting them

equal would be fine by me.

[mrreowwr_kittty]

10. Would you rather pay ordinary income tax on it?

If anything, I think gains on stock should be taxed HIGHER than labor. We have it bass ackwards here, IMO. It's like Thom Hartmann says, the most highly rewarded people in this economy are sitting around the pool cashing dividend checks and making phone calls to their brokers.