[quote=TheBreeze]That’s easily fixable. All we have to do is tax capital gains at the same rate as income. Problem solved.
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Not so fast. These are multinational companies. They could then have their permanent resident in some other country and get taxed in that country. Then the government wouldn’t get a single dime from these guys. Also, you have to remember that capital gains tax is applied when they sell. So, if they don’t sell until the tax situation is more favorable to them, then they wouldn’t be affected by the rising capital gain tax either. There are many ways these ultra rich can reduce their taxes.
I think you should blame the government for making these guys richer. These are very smart guys who know how to invest and take advantage of any situation. The FED and government has been bailing out the average Joe many times, which then cause other bubbles. Due to these bubble and bust, these rich people take advantage of the bubbles and sell quick enough to not experience the bust. So, if you really want to fix the root cause of the problem, you should remove the FED and IRS and bring us back to the gold standard. Increasing taxes on the rich is just putting duck tape in a leaking dam.
