There are too many issues with predicting capital gains to actually use it to shift tax burdens. Income tax has to be completely separate from capital gains tax. 1. Those millions of transactions can be losses in which there is no tax. 2. The amounts on those capital gains can be incredibly small. 3. People are encouraged to hold long term because the capital gains tax is lower. 4. If you increase capital gains tax, people will not invest as much and put their money elsewhere.
Like more socially relevant uses? As for your arguments regarding capital gains, the shifts in the tax burden to other streams are happening every day. It is a simple matter of adjusting taxes yearly (as many states and firms do) in light of anticipated tax revenues. As you know, no public entity budgets based on what is in the bank, but instead on anticipated revenues and budgets are adjusted upward and downward accordingly.
The Congressional Budget Office did a study of our tax system . According to the study, the lowest earning 20% of Americans (24.1 million households earning an average of $15,900 in 2005) paid an effective federal tax rate of 3.9%, when taking into account income tax, social insurance tax, and excise tax. The highest earning 5% (5.8 million households earning an average of $520,200 in 2005) paid an effective federal tax rate of 21.5%. The law allows for individuals to defer capital gains taxes with tax planning strategies such as the structured sale, charitable trust, installment sale, private annuity trust, and a ROTH IRA. So if you change the system people will adjust. Income taxes are far more predictable and mandatory. So the best way is to simply change the income tax code and not use capital gains as an offset.
That is straight bullshit right there. It is a known FACT that the tax rate is higher than that. And anyhow...how you gonna sit there and say a tax rate of 3.5 percent or whatever ridiculous figure you want to pull out of your hat and then turn around and bitch and moan and complain that Obama wants to raise taxes? Even if only on the wealthy? Which is it? Are they to high and need to be lowered? Or is it the opposite? Or does that only pertain to the elite? What now, republicans?
In the UK there will be a Emergency Tax for the rich. Boy,are they scared. I wished it would happen but,it won't. Besides,not in my lifetime there will be a distribution of wealth in the US. Besides,Romney will turn over 12 years of his income taxes if there is a sharing of wealth in the USA.
OK, well if you have a problem take it up with the Congressional Budget Office. I'm sure they would love to hear why it is bullshit. Quick economics lesson: 1. Regular income tax rates are not effective tax rates. 2. Obama raising taxes on the wealthy has no economic benefit and will fund government for 8 days at current spending levels. It is purely a political move to say "don't look at me...look over there at those rich people" and the liberal media outlets won't ask him a tough question. 3. And to answer your question. Right now taxes need to be lowered to stimulate spending, encourage investment, and allow people to save. When the economy turns around and is experiencing good growth you can afford to raise taxes. But both scenarios require that you keep a good handle on spending.
It is important to remember that there is an estimated 6 trillion dollars sitting on the sideline in the accounts of private investors and business owners...... And.... it is their money !!!.... They will not however take a chance and recirculate that money when this confiscatory and non-business friendly president is in office.......They perceive him as a European style socialist and a redistributionist of wealth.....If you think the middle class and average Americans are feeling the pinch of having-to-do-with-less now,...... wait and see how the index of pain and deprivation will be dramatically increased in the event of a second term for president Obama ........
Please... It is their money... Made off the work of the poor and middle class. What is it with you people who some how think people exist in a vacuum? If its their money that they made on their own with no one else helping them..then they can kindly keep ALL that money as long as they: Don't drive on public roads Don't call 911 in the event of an emergency Don't send their children to public school Don't use the Internet Or phones use the postal system Don't collect Medicare or social security after retiring And a host of other publicaly funded resources that as Americans..we ALL use.
Even if they pay little to no taxes......it's their money......Just how much can you, me and president Oboma do to seize and redistribute their money...................TDK you live in a capitalist country and greed drives free market capitalism....
State power in a capitalist country usually focuses on the creation of standards, public health, safety, and welfare, such things as regulating the currency, protecting the environment, and assuring the health of the populace Oohhhhhh... I'm sorry. Would u like to see what's behind door #3?
ARRRRRCH. respond to what dude just stated and respond to this fact........the rich maybe job creators but the poor and the middle class are job sustainers
Boy I could deconstruct this thing every way from here to Sunday but let me ask you this. Do you think we were better off during the Clinton years when taxes were higher (exactly the same tax rate Obama is asking for) or during the last 12 years under the Bush tax cuts? And you really think a 3 percent tax hike is going to reflect greed in this world? We live in a country where people are willing to buy 600 dollar pieces of plastic that barely do more than the 600 dollar piece of plastic they got last year but are willing to line up around the corner for it. So I'm sorry fam I don't see your logic.
Speaking of Boss.....That is what I would like for both you and GoodLove one of these days......It would change your perspective radically. If come hook or crook you each were able to develop a business: TDK inc.--5 employees--Annual gross earnings($650,000-1,000,000) & GoodLove enterprises--6 employees--Annual gross earnings($700,000-1,000,500) So that you were both entrepreneurs living the American dream with a small piece of the pie..........the last thing you would want would be your government coming to eyeball your profits,... micro-manage your plans for joint ventures with other businesses,... and regulating your plans to grow and expand...You would abhor government intrusion into this dream you built for your self. Now, you could not sell me the rubbish that you would cheerfully come forth with 40% or more of your earnings to give back to the community, the poor blacks in poverty and your beloved government.....Because your generosity would be focused on those closest to you first,.... a better home for your mom,... a loan for your favorite younger brother,... a better running car for your sweet younger sister or a bigger rock for the woman in your life.........You would be the boss with plans for the many close people depending on you..... and the last damn thing you would want to hear is the bureaucracy redefining for you what they think is your higher fair share of taxes .......Now as an owner, some might malign your natural reactive protectiveness as cooperate greed,..... but until they experience the taste of a successful business as a result of personal effort, one of which you can call your own,------- the entrepreneurial spirit driven by free market capitalism will forever be outside of their scope of understanding and appreciation......
We'll obviously have to agree to disagree on this. I have a fundamental disagreement with the administration of taxes generally. I don't believe that any income should be shielded from taxation. If all income is taxed equally across the board, you remove the incentive for creative tax avoidance schemes, legal or otherwise. And yes, I do believe that those who make disproportionately more from the commons (i.e. publicly funded socioeconomic order) can and should pay disproportionately more for its maintenance. Taxes are the price for civilization, and everyone benefits from it, prince and pauper. Quite true. The entire economy depends, NOT on the individual choices of captains of industry, but on the aggregate activity of all the millions of consumers, working, producing and purchasing. The economic discourse in this country is far too similar to the Great Man theory of history, as if one person wins a war, one hero saves the day and one captain of industry does it all himself, and thus, deserves his spoils. A far too simplistic perspective, in my view... one more fitting the US's Hollywood-ized version of itself than empirical facts. The truth is that every primate activity of a higher order than defecating is a collective effort.
Is it unusual that so many U.S. companies are shielding roughly $6 trillion in profits offshore?? I don't recall this ever happening before in recent history. IMO corporations are using the recent recession as a kind of economic extortion against the U.S. government to lower their overall corporate tax rate. It seems corporations are more than willing to stagnate growth in the U.S. economy in order to force Congress to re-write the tax code. Economic uncertainty my ass. How long before average Americans view what U.S. corporations are doing as a form of treason against the State???
