Taxes!

[CA renter]

[quote=AN][quote=CA renter]Let me clarify this a bit. I would tax passive income at around the same rate as earned income up to a certain amount (maybe up to $50K/year). After that, it graduates, and at some point, it would begin to get steeper (perhaps above $200K/yr, but this could be smoothed to avoid extremely high taxes on one-time sales, etc.). Passive income above $500K/yr would be taxed at the highest marginal rate. I’m pulling these levels out of thin air, and would want to do a more detailed analysis before determining the exact rates and income levels, but these numbers are probably pretty close to what I’d call optimal. Of course, I would allow for some smoothing, maybe over three years, so that windfall events don’t trigger the highest rate if most years only see very low returns.[/quote]
So, in essence, you are saying higher cap gain tax for EVERYONE. Those who currently make < $50k/year (those who are in the 10% and 15% tax bracket) are currently paying 0% in long term cap gain and same as their ordinary income for short term cap gain. You're punishing the investor in the 10% & 15% tax bracket, yet don't touch the day traders and the "speculators". You've been railing against "speculator", yet your proposal don't touch those guys but drastically affect those who are investors (those who hold their investments for at least a year). BTW, what's your definition of steep? Also, why stop at $500k? I'd say, we should have a billionaire tax. How about 80% tax on all time of incomes for billionaires? Is that steep enough?[/quote] Okay, I'm not a CPA, and am not in the 10-15% rate group, so not sure how those with LT gains pay 0% if they earn $50K in regular income??? It's my understanding that you pay 15% on LT gains, irrespective of your earned income. Am I off on this? edit: Wow, found this: The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?

[an]

[quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

[an]

[quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

[an]

[quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

[an]

[quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

[an]

[quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

[CA renter]

[quote=AN]So, in essence, you are saying higher cap gain tax for EVERYONE. Those who currently make < $50k/year (those who are in the 10% and 15% tax bracket) are currently paying 0% in long term cap gain and same as their ordinary income for short term cap gain. You're punishing the investor in the 10% & 15% tax bracket, yet don't touch the day traders and the "speculators". You've been railing against "speculator", yet your proposal don't touch those guys but drastically affect those who are investors (those who hold their investments for at least a year). BTW, what's your definition of steep? Also, why stop at $500k? I'd say, we should have a billionaire tax. How about 80% tax on all time of incomes for billionaires? Is that steep enough?[/quote] Yes, I'm suggesting we should have higher cap gains taxes for EVERYONE. For those in the lower tax brackets, it would be in line with the rate on their earned income, so they would still be taxed at a low rate. You and I define "investing" differently. IMHO, the period of time one holds an asset does not determine whether they are investing or speculating. It's the type of investment that determines whether or not one is "investing" or "speculating." The "day traders" (Joe Smith at his desk at home who trades a few hundred or a few thousand shares per day) don't bother me. The high-frequency traders DO bother me because of the sheer volume they control, and the leverage that they use. The HFT crowd would indeed be affected by what I propose because they make well into the millions/billions per year -- and not a cent of that benefitted society, BTW.

[CA renter]

[quote=AN]So, in essence, you are saying higher cap gain tax for EVERYONE. Those who currently make < $50k/year (those who are in the 10% and 15% tax bracket) are currently paying 0% in long term cap gain and same as their ordinary income for short term cap gain. You're punishing the investor in the 10% & 15% tax bracket, yet don't touch the day traders and the "speculators". You've been railing against "speculator", yet your proposal don't touch those guys but drastically affect those who are investors (those who hold their investments for at least a year). BTW, what's your definition of steep? Also, why stop at $500k? I'd say, we should have a billionaire tax. How about 80% tax on all time of incomes for billionaires? Is that steep enough?[/quote] Yes, I'm suggesting we should have higher cap gains taxes for EVERYONE. For those in the lower tax brackets, it would be in line with the rate on their earned income, so they would still be taxed at a low rate. You and I define "investing" differently. IMHO, the period of time one holds an asset does not determine whether they are investing or speculating. It's the type of investment that determines whether or not one is "investing" or "speculating." The "day traders" (Joe Smith at his desk at home who trades a few hundred or a few thousand shares per day) don't bother me. The high-frequency traders DO bother me because of the sheer volume they control, and the leverage that they use. The HFT crowd would indeed be affected by what I propose because they make well into the millions/billions per year -- and not a cent of that benefitted society, BTW.

[CA renter]

[quote=AN]So, in essence, you are saying higher cap gain tax for EVERYONE. Those who currently make < $50k/year (those who are in the 10% and 15% tax bracket) are currently paying 0% in long term cap gain and same as their ordinary income for short term cap gain. You're punishing the investor in the 10% & 15% tax bracket, yet don't touch the day traders and the "speculators". You've been railing against "speculator", yet your proposal don't touch those guys but drastically affect those who are investors (those who hold their investments for at least a year). BTW, what's your definition of steep? Also, why stop at $500k? I'd say, we should have a billionaire tax. How about 80% tax on all time of incomes for billionaires? Is that steep enough?[/quote] Yes, I'm suggesting we should have higher cap gains taxes for EVERYONE. For those in the lower tax brackets, it would be in line with the rate on their earned income, so they would still be taxed at a low rate. You and I define "investing" differently. IMHO, the period of time one holds an asset does not determine whether they are investing or speculating. It's the type of investment that determines whether or not one is "investing" or "speculating." The "day traders" (Joe Smith at his desk at home who trades a few hundred or a few thousand shares per day) don't bother me. The high-frequency traders DO bother me because of the sheer volume they control, and the leverage that they use. The HFT crowd would indeed be affected by what I propose because they make well into the millions/billions per year -- and not a cent of that benefitted society, BTW.

[CA renter]

[quote=AN]So, in essence, you are saying higher cap gain tax for EVERYONE. Those who currently make < $50k/year (those who are in the 10% and 15% tax bracket) are currently paying 0% in long term cap gain and same as their ordinary income for short term cap gain. You're punishing the investor in the 10% & 15% tax bracket, yet don't touch the day traders and the "speculators". You've been railing against "speculator", yet your proposal don't touch those guys but drastically affect those who are investors (those who hold their investments for at least a year). BTW, what's your definition of steep? Also, why stop at $500k? I'd say, we should have a billionaire tax. How about 80% tax on all time of incomes for billionaires? Is that steep enough?[/quote] Yes, I'm suggesting we should have higher cap gains taxes for EVERYONE. For those in the lower tax brackets, it would be in line with the rate on their earned income, so they would still be taxed at a low rate. You and I define "investing" differently. IMHO, the period of time one holds an asset does not determine whether they are investing or speculating. It's the type of investment that determines whether or not one is "investing" or "speculating." The "day traders" (Joe Smith at his desk at home who trades a few hundred or a few thousand shares per day) don't bother me. The high-frequency traders DO bother me because of the sheer volume they control, and the leverage that they use. The HFT crowd would indeed be affected by what I propose because they make well into the millions/billions per year -- and not a cent of that benefitted society, BTW.

[CA renter]

[quote=AN]So, in essence, you are saying higher cap gain tax for EVERYONE. Those who currently make < $50k/year (those who are in the 10% and 15% tax bracket) are currently paying 0% in long term cap gain and same as their ordinary income for short term cap gain. You're punishing the investor in the 10% & 15% tax bracket, yet don't touch the day traders and the "speculators". You've been railing against "speculator", yet your proposal don't touch those guys but drastically affect those who are investors (those who hold their investments for at least a year). BTW, what's your definition of steep? Also, why stop at $500k? I'd say, we should have a billionaire tax. How about 80% tax on all time of incomes for billionaires? Is that steep enough?[/quote] Yes, I'm suggesting we should have higher cap gains taxes for EVERYONE. For those in the lower tax brackets, it would be in line with the rate on their earned income, so they would still be taxed at a low rate. You and I define "investing" differently. IMHO, the period of time one holds an asset does not determine whether they are investing or speculating. It's the type of investment that determines whether or not one is "investing" or "speculating." The "day traders" (Joe Smith at his desk at home who trades a few hundred or a few thousand shares per day) don't bother me. The high-frequency traders DO bother me because of the sheer volume they control, and the leverage that they use. The HFT crowd would indeed be affected by what I propose because they make well into the millions/billions per year -- and not a cent of that benefitted society, BTW.

[CA renter]

[quote=AN][quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States%5B/quote%5D

Thank you for pointing that out. Looks like they changed it from 5% to 0% in 2008.

Yeah, I’d eliminate that, absolutely. No reason for poor people to have their labor taxed at a higher rate than cap gains.

[CA renter]

[quote=AN][quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States%5B/quote%5D

Thank you for pointing that out. Looks like they changed it from 5% to 0% in 2008.

Yeah, I’d eliminate that, absolutely. No reason for poor people to have their labor taxed at a higher rate than cap gains.

[CA renter]

[quote=AN][quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States%5B/quote%5D

Thank you for pointing that out. Looks like they changed it from 5% to 0% in 2008.

Yeah, I’d eliminate that, absolutely. No reason for poor people to have their labor taxed at a higher rate than cap gains.

[CA renter]

[quote=AN][quote=CA renter]
edit: Wow, found this:

The tax rate on long-term gains was reduced in 2003 to 15%, or to 5% for individuals in the lowest two income tax brackets (See progressive tax).

http://en.wikipedia.org/wiki/Capital_gains_tax

Still, it doesn’t seem to be 0%. Where are you getting that from?[/quote]
Here yah go: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States%5B/quote%5D

Thank you for pointing that out. Looks like they changed it from 5% to 0% in 2008.

Yeah, I’d eliminate that, absolutely. No reason for poor people to have their labor taxed at a higher rate than cap gains.

[Author]

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