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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (49861)3/11/2012 1:26:22 PM
From: TimF  Read Replies (2) of 71588
 
And what amounts to having your own skin in the game can be a bit murky.

If you get compensated by a delayed share in the profits rather then upfront cash, that's equivalent to getting a smaller amount of upfront cash (ordinary income), and then investing it and getting a return (capital gain).

ALL INCOME, regardless of source, should be taxed at the same low fair flat tax rate.

Capital gains are often on income that's already been taxed. Also they are on gains that are not really gains but just inflation, so taxing it at the "same rate" is really anything but, in fact you can have an infinite rate on capital gains (no actual gain, some actual tax, its either infinite or its a divide by zero error).

Beyond that high rates on investment income is economically harmful, the only way to avoid the harm and have every rate be the same is to cut ordinary income rates. I'd be fine with that, but then we would have to cut spending (which I'd also be fine with but many would not).
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