Forum Post: Why do workers pay more tax on their work than investors pay taxes on their investments?
Posted 12 years ago on Dec. 3, 2011, 2:40 p.m. EST by warriorjoe7
(232)
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so capital gains is at like 15% or something and employees work on a sliding scale with most middle class paying above 25%
Why should capital gains be lower? It only encourages investors to invest in money, not workers. It should be the other way around.
I find it ridiculous that an investor says nothing more to his broker than "put 500,000 on GE" and if he makes a profit of 60,000 over the year he pays 9,000. Meanwhile Joe Blow and his wife work their asses off for their 3 kids, putting in 50 hours a week each, to earn 60,000 and then they pay 12,000 in taxes.
Doesn't seem right. Capital gains need to go up, and the income tax system either needs to be reformed to great simplicity or done away with altogether (since it is probably illegal anyways)
The rates need to be closer and the hedge funds should be taxed at the corporate rates.
paid work should be taxed at a LOWER rate than trust fund or investment income for which one does not work.
exactly
Further to the excellent opening post above, please also see :
a) http://www.businessinsider.com/these-are-the-30-american-companies-that-paid-less-than-zero-income-tax-from-2008-2010-2011-11?op=1#ixzz1ejBOPiGq ;
b) http://www.ctj.org/corporatetaxdodgers/CorporateTaxDodgersReport.pdf ;
c) http://rt.com/programs/keiser-report/ ;
d) http://www.nomiprins.com/ &
e) http://ni4d.us/ .
pax et lux ...
Its because you have to work very hard for those millions in capital gains, even with today's technology having to lift a telephone for anything other than a social call is a quite a bit of work for these lazy rich slobs who are ruining the country. ;p
I think the argument is that since corporations already pay income taxes, capital gains amount to double taxation. Of course, we now live in an age where corporations don't really pay much taxes at all, and neither do the people running them.
I agree, you gotta be like Bank of America and make up that difference somewhere... like putting a bit 'ol fat tax on capital gains that none of them can weasel their way around.
I agree with you... double taxation my ass... the corporations use the loopholes (or legislation or subsidies that they lobbied for) to get out of paying tax then they pay as little employee income as they possibly can (which is taxed at the higher rate) and as much capital gains as they can, especially to their own executives and big investors, which is taxed at a lower rate... plus capital gains do not have to pay social security or medicare taxes... grrrr!
The whole entire game is rigged. The criminals and their hirelings write the rules and decide who gets to enforce them. There was an excellent post here a few days ago:
http://occupywallst.org/forum/why-retail-investors-should-flee-stock-market/
I'm opposed to more Taxes period. I'm not even middle class much less rich and I still don't think it is fair that the 1% has to pay 40% of this nations tax. yes that's a fact.
but you failed to add if the Investor LOST that 60,000 over the year he LOST it. period.
encouraging people to Invest in businesses seems a LOT more probable to help the economy than holding a sign and demanding them hand us money for nothing.
The 400 richest Americans control more than 50% of all wealth in the US. Despite that, the top 1% pays less than 37% of the nations income tax.
40% of all federal revenue is from FICA, paid by every working American. Since FICA is capped at $106,000 of income, those making $300,000 a year pay 1/3 the rate of those making up to $106,000 a year.
Investing is not about business, it is about making money. The most profitable investments are those with no expenses (labor, materials, transportation, etc.) and the ones with the lowest tax liability ("foreign investment", dividends, capital gains). Thus most investment is NOT into creating or building business, but into options, puts, credit default swaps, insurance, derivatives, etc.
EXactly
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No you can carry forward capital losses and offset you capital gains if the are long term. The losses are not lost.