4 ms·
I thought most really wealthy people don't earn "income" in the first place? Don't they generally pay capital gains tax, or no tax by just borrowing money again
by bo1024 7y ago
I thought most really wealthy people don't earn "income" in the first place? Don't they generally pay capital gains tax, or no tax by just borrowing money against their assets rather than selling them?
- TheBeardKing 7y agoThat's the real problem. Capital gains taxes are at historic lows since the Bush administration [1]. They should be bracketed like income. [1]https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_Unite... edit: Downvotes instead of rebuttals. Nice.
- throwaway5752 7y agoI think you're being downvoted because capital gains are split between long and short term gains, and short term gains are already taxed like income. The division exists to encourage longer term investment, and it's probably a good policy. I didn't downvote you, because I think that general point that the spread between long and short term rates is too regressive at higher income brackets.