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I don't understand how estate and capital gains taxes are regressive. Estate taxes (in the United States at least) only kick in on inherited assets > $5M or so
by throw_away 11y ago
I don't understand how estate and capital gains taxes are regressive. Estate taxes (in the United States at least) only kick in on inherited assets > $5M or so (< 0.2% of estates). Capital gains are AFAIK assessed as normal income for short-term gains (so, progressive) and as a flat (neither progressive nor regressive) rate for long-term gains, and even then, only for people with actual investments, which excludes probably the majority of the poor.
When I think regressive taxes, I think things that are flat fees, or else things like fica, which cut out after a certain income.
- danhak 11y agoRegressive in the general sense--privileging those who already have access to wealth. The long term capital gains rate is a good example.
- zo1 11y agoThey are progressive by their implementations, and by the definition of the word progressive. What it sounds like you are trying to say is that it's not "progressive" enough for your liking. And then you turn the definitions upside down and label it "regressive".