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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (6065)	3/10/2004 1:50:53 AM
From: TopCat	Read Replies (1) \| Respond to of 81568

>>>...idle capital<<< Your lack of understanding of economics is astounding....unless you put you money under the mattress. TC

To: Lizzie Tudor who wrote (6065)	3/10/2004 5:57:23 PM
From: brushwud	Read Replies (1) \| Respond to of 81568

we have tax exemptions for housing sales of 500K. I am not suggesting that should be repealed. It's 500K for married filers, I think. Didn't know you were in that category. It is A LOT easier to make $200K in capital appreciation than in salary. Why should salary be taxed more? If you think about it, the worker actually produces something, in theory he should probably be taxed LESS than idle capital. How much time + money do you think it should take to make $200K? To do it in one year with a million bucks implies a 20% rate of return. That's hard. And you can't do that with "idle" capital--it could be a "passive" investment, but it still involves risk. The main thing is that having a lower long-term capital gains rate than ordinary income is a compromise. It does give somewhat of a break for inflation. Of course there are other ways of doing that, like indexing capital gains, but taxing inflationary "gains" is confiscatory. And corp taxes are too low, Buffett is exactly right. I haven't seen whatever he said, but corporate & individual income tax rates need to be close to each other or else really wealthy people will simply move their income to the kind that is taxed less. For example, a small-business corporation owner could pay himself 100% of his profit as an employee and pay zero corporate income tax. Are you picking on corporations because you're completely out of the stock market?