Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (35113)	7/17/2012 11:44:32 AM
From: Kirk ©	3 Recommendations Read Replies (1) \| Respond to of 222735

We probably agree more than we disagree. Social Security is an illegal Ponzi scheme created with a false promise of future security. As self employed for the past 14+ years, I resent having every dollar I've paid into it spent rather than invested to give me back in retirement like a pension from CALPers... I resent even more that I'm told I'll have much of what I am paid when I collect SS taxed away because I saved and invested rather than pissed away my salary on new cars and fancy trips every year like most others. MY PAYROLL TAXES financed BIG GOVERNMENT just as much as the income taxes on the billionaires in my town. Cain and flat taxers have a decent idea. Get rid of what we have now and make a simple system that gives low "Bush tax cut rates" to savers for the first $200K of investment income then consider all income above this as ordinary. Perhaps have a few tiers so low income people pay 10% for first $50K to cover their payroll taxes AND a small contribution to the government... then have 15% for the next $50K and continue with steps up to some fair but lower rate. Make it simple so people don't have to pay $200 to have someone do a simple tax return. For capital gains, allow deduction for inflation so if you buy something like a house or shares of stock you don't have to pay taxes to move or switch investments to a better stock just because the government created inflation.

To: sandeep who wrote (35113)	7/17/2012 12:05:38 PM
From: SGJ	Read Replies (1) \| Respond to of 222735

Lower taxes on long term gains were set up as an incentive to hold an investment. Long term holders also have a risk factor that the lower taxes attempted to compensate. Long term investments are what fuels growth, jobs, etc. as typified by refinerys, factories, business startups, tech products, etc. I think this is one of the better parts of the tax code.

To: sandeep who wrote (35113)	7/17/2012 3:15:27 PM
From: Brian Sullivan	Read Replies (2) \| Respond to of 222735

sandeep, I think that what would make things fairest is to taxes both at the same rate but to allow for inflation as well. So let’s say you purchase $1000 or Gold or some other Commodity that is intended to hold its value with respect to inflation. You hold it for ten years, and the final price of what you are holding simple increases by whatever the inflation rate is. So if over 10 years the annual inflation rate is 0% the final value is the same $1000. If the annual inflation rate is 3% the final value is $1343.90 If the annual inflation is 10% the final value is $2593.70 If the annual inflation rate is 20% the final value is $6191.70 In all cases you didn't really profit at all what you had at the end would purchase the same item(s) that it would at the start. With a capital gains tax rate of 28% the government would take $1453.70 of the $6191.70 (as there would be a gain of $5191.70 since inflation is not factored into capital gains) Thus the government would be taking 23.5% of your property via capital gains taxes if we are running under 20% inflation. If the inflation rate remains very low or zero then this is not a problem.