When I made hundreds of thousands in capital gains in the 90s doing nothing more than talking to my buddies about what was going on, that "passive income" was not taxed at high rates, ever. The listed companies and their EARNINGS are taxed at some smaller proportion to earned rates...
Dizzy, add tax law to your remedial study list. "Passive income" in the context of personal income taxes NEVER includes capital gains from securities investments and it definitely DOES NOT get favorable tax treatment. Passive income refers to the taxpayer's share of business income and losses from a business in which they do not materially participate. This is generally reported to you on a form K-1 (from a partnership, S-corp, etc.) and, BTW, would NOT come from ownership of shares of a "listed company" unless you happen to know of one that is structured as a pass-through entity. And passive income, in fact, gets UNfavorable tax treatment because you can't deduct passive losses except against passive income (and even then, you may have AMT issues). Beyond that, it is taxed as ordinary income to you - just like "active" business income if your business is profitable.
I paid no FICA on my income, my employees were socked with that. Some of my money was "long term" at which point it received the lower rate. Capital gains are a travesty, a sham.
So, you now want to eliminate the preferential treatment of long-term cap gains? AND hit them with FICA deductions to boot? LOL. Why don't you just advocate confiscation of all wealth to be held and redistributed at the whim of your favorite politician?
Anyway, please get yourself some remedial education in taxes - your economic ignorance was bad enough. |
