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I get capital gains from dividends and stock sales. How do you figure that that is not income? I literally do no work for that money, but am charged less in tax

I get capital gains from dividends and stock sales. How do you figure that that is not income? I literally do no work for that money, but am charged less in taxes for it than that on my salary. But it is new money adding to my wealth. How is taxing that at a lower rate anything but privileging those who are better off (I don't think of myself as rich, but others may dispute that). I understand your point about inflation, but then you would have to count that in in interest earnings, and a lot of other places. The Federal Reserve essentially uses inflation as a club to force people to keep their money moving, thus simulating the economy. Why would we kill that club for capital gains? Treating capital gains as regular income absolutely is a solution to even out the playing field. I would even take taxing them at more (even though it hits my pocket book). But an even playing field where business owners don't get to play around with their income to have it rated better than their employees sounds like a good start.

deleted 5y ago
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syshum 5y ago
>>The Federal Reserve essentially uses inflation as a club to force people to keep their money moving, thus simulating the economy Sounds like you think this is acceptable, to manipulate the currency to force people do things they would not normally do.. We have fought wars over other nations doing things like that... I do not find that practice to be acceptable. So we are starting very different economic worldviews chances are we will not agree on much when it comes to taxation
dasil003 5y ago
One of the arguments against raising the capital gains rate is that the people enjoying that rate don't need to realize gains, they can simply borrow cash against their assets, so raising the capital gains rate could theoretically reduce tax revenue. Not sure how true that is in practice, but I thought it was at least worth considering.

deleted 5y ago

[deleted]

syshum 5y ago

>>The Federal Reserve essentially uses inflation as a club to force people to keep their money moving, thus simulating the economy Sounds like you think this is acceptable, to manipulate the currency to force people do things they would not normally do.. We have fought wars over other nations doing things like that... I do not find that practice to be acceptable. So we are starting very different economic worldviews chances are we will not agree on much when it comes to taxation

dasil003 5y ago

One of the arguments against raising the capital gains rate is that the people enjoying that rate don't need to realize gains, they can simply borrow cash against their assets, so raising the capital gains rate could theoretically reduce tax revenue. Not sure how true that is in practice, but I thought it was at least worth considering.