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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 343.03+0.2%Jan 12 4:00 PM EST

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To: Boca_PETE who wrote (6865)12/26/2011 10:10:09 PM
From: Investor21 Recommendation   of 10065
 
Re: "To me, he's sounding like a 'Socialist' by bifurcating taxation on capital gains based upon the type of investor and applying higher tax rates to those he labels 'gamblers'."

Capital gain taxation is already bifurcated based on the length one holds stocks. Holding over one year produces a long-term capital gain that is taxed at a lower rate.

The article says, "'Dividend income should be taxed at the same rate as ordinary income, he says.'"

The money from which the dividends come already gets taxed at the corporate rate when companies make profits. Taxing that money again when it is paid out as dividends is double-taxation that doesn't make sense.

Best wishes,

I2
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