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That's not really true, though. It's true that if I buy some stocks for $100k I have (presumably) already paid taxes on that $100k. But if I sell the stock fo
by jlarocco 7y ago
That's not really true, though.
It's true that if I buy some stocks for $100k I have (presumably) already paid taxes on that $100k. But if I sell the stock for $600k two years later, that extra $500k hasn't been taxed as income, and is only taxed as a capital gain.
> Capital gains taxes apply to both the rich and the poor, with the latter paying a whopping 0%.
Kind of silly to point that out. It's very easy for a "rich" person to have almost all of of their real income come from capital gains, but nearly impossible for many poor people to even have capital gains, much less arrange for it to be most of their income.
- pb7 7y agoI’m not sure where we are in disagreement. Rich people don’t become rich without first paying income taxes. Sure, once they have wealth, they mostly pay capital gains tax but if you and I have the same definition of rich, to sustain a luxurious life off investments alone, you had to have paid millions in income taxes which is more than most people will pay in their entire working years. Additionally, turning $100K into $600K in two years is not as easy as you’re portraying it to be.
- ghettoimp 7y agoHrmn. I suspect many rich people were born that way, and paid no income taxes in utero.