Capital gains are the key ingredient of income disparity in the US-- and the force behind the winner takes all mantra of our economic system. If you want even out earning power in the U.S, you have to raise the 15% capital gains tax. Income and wealth disparities become even more absurd if we look at the top 0.1% of the nation's earners-- rather than the more common 1%. The top 0.1%-- about 315,000 individuals out of 315 million-- are making about half of all capital gains on the sale of shares or property after 1 year; and these capital gains make up 60% of the income made by the Forbes 400. It's crystal clear that the Bush tax reduction on capital gains and dividend income in 2003 was the cutting edge policy that has created the immense increase in net worth of corporate executives, Wall St. professionals and other entrepreneurs. The reduction in the tax from 20% to 15% continued the step-by-step tradition of cutting this tax to create more wealth. It had first been reduced from 35% in 1978 at a time of stock market and economic stagnation to 28% . Again 1981, at the start of the Reagan era, it was reduced again to 20%-- raised back to 28% in 1987, on the eve of the October 19 232% crash in the market. In 1997 Clinton agreed to reduce it back to 20%, which move was an inducement for the explosion of hedge funds and private equity firms-- the most "rapidly rising cohort within the top 1 per cent." Make no mistake; the battle that is to be fought over the coming attempt to reverse this reduction in capital gains will be bloody and intense. The facts are clear according to the Congressional Budget Office more than 80% of the increase in income inequality was the result of an increase in the share of household income from capital gains. In fact, you can go so far as to claim that "Capital Gains income is the most unevenly distributed-- and volatile-- source of household income," according to Laura D'Andrea Tyson, University of California business professor and former chairwoman of the Council of Economic Advisers under President Clinton. No wonder the super wealthy plutocrats obtained the largest share of national income-- 25% of the nation's wealth- greater than any other industrial nation in the the period of 1979 to 2005. Make no mistake; after unemployment-- this disparity between the 1%-- 3 million-- or the 0.1%-- the 300,000-- and the other 312 million citizens of the U.S. has become the major theme of the Occupy Wall Street movement-- and an important national debate. I commend you to the late Justice Louis Brandeis warning to the nation that " We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." We have to make up our minds to restore a higher, fairer capital gains tax to the wealthiest investor class-- or ultimately face increased social unrest.
Well these welfare reciepents receive CAPITAL GAINS FOR F#$*(#% FREE. No one bothers them. If you own property its already taxed yearly. Go buy something with Fiet money its taxed in most states 10% Why should should the frekkin Gooberment get all the capital gains. The United States used to be Governed by the people for the people and of the people. Now were governed for the loosers by the loosers and have obama running the show.
I subscribe to John's Smith edict to the Colonists " He who doesn't work - doesn't eat " End the Welfare State - Free Food, Free Money and Free Healthcare - All paid by those of us who go to jobs we don't feel like going to on some days but we go in anyway because of who we are.... I'm tired of leeches sucking my lifeblood due to their laziness... Contribute or get out OK I am off my soapbox....
The entire notion that the more a person earns, the more they should pay in taxes ( income, capital gains, whatever )is a page right out of the communist manifesto, and has no business being in the US tax code AT ALL. AND, as a practical matter, it doesn't work.....because the rich spend their money to lobby Congress to get breaks that shield them as much as possible anyway...... But just like making "business pay it's 'fair share'...", ( business doesn't pay taxes....they pass it on in some form to PEOPLE, who pay ALL the taxes ) it sounds good and folks on down the economic food chain eat it up. WHY, as a matter of "fairness" would you tax a guy who got up off his backside, is more productive than a burger flipper, and made something of himself MORE ? Does he use the Army more ? Does he use welfare more ? Does he drive on the roads more ? ( and if he does, he pays MORE in fuel tax...a truly FAIR tax ).....so why should citizen A pay more than citizen B ?? Simply because he earns more ?........Karl Marx....."from those with ability to those with need"......which is fine for voluntary charity, but I don't want a government based on it.
Andy, sumhow they want to discourage people from working harder to try & make more money. That way we all stay poor & dependent on the Government to help us out. Pretty dang good theory ain't it? Too bad it seems very very true!!!
Let's also bear in mind that long term cap gains are, to a great extent, the only way "the 99%" manage to keep up with inflation in order to build a retirement...and that inflation itself can create the illusion of a capital gain much larger than the functional worth of the gain. For example, let's say you bought a house in 1980 for $80K and sold that house in 2000 for $250K...that would appear to represent a tripling of your investment for a cap gain of $170K. However, the $250K you receive in 2000 is worth far less than 3 times what the $80K was in 1980...I'd have to look at the indexing tables, but would venture to say there isn't much difference at all, and, after paying cap gains tax, you may actualy end up taking a loss in actual worth. At the very least, long term cap gains need to be indexed for inflation before being taxed.
