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> a disproportionate percentage of MY salary is used to support the poor relative to rich people. The operative word there is "salary". Buffet had such a low (
by Domenic_S 15y ago
> a disproportionate percentage of MY salary is used to support the poor relative to rich people.
The operative word there is "salary". Buffet had such a low (as a %) tax bill because most of his income isn't salary but cap gains.
Let's raise cap gains tax to 50% you say? Sounds great until you sell your house in a few years.
- Retric 15y agoThere is a huge difference between taxing cap gains at 15% vs 50%. IMO, treat it as any other income source if I am going to work and pay ~40+% of my income in taxes why on earth should I pay MORE so people making 100 times what I do get a discount. However, I also pay a higher percentage though many other regressive taxes. Consider, I own a reasonably nice car and pay taxes on it, but if I make ten times as much I don't suddenly buy a car that costs ten times as much.
- Domenic_S 15y ago> IMO, treat it as any other income source You mean treat it like salary? It wouldn't matter. People with that much cap gains would leave investments where they are and take out low-interest loans against it. That's what they do today. Actually, lots of middle class people do (or have done) the same thing with HELOCs. Rather than selling their house for a profit (and paying cap gains), buying a cheaper house, and using the profit to upgrade the cheaper house, they took out a loan against their equity. > why on earth should I pay MORE so people making 100 times what I do get a discount. You imply a causal relationship where none exists.
- absconditus 15y agoCapital gains taxes are not paid on the sale of one's residence if another home is bought with the proceeds.