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.

Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (50162)	8/4/2013 2:44:27 PM
From: TimF	Read Replies (1) \| Respond to of 85487

Capital gains are for the upper 20%, and more specifically for the upper 1% of society. No anyone who can make a purchase and sell for a profit can make a capital gain. The poor are don't have much capital, but they sometimes have capital gains as well. Far more often the middle class makes capital gains. The 15 percent tax rate on dividends and capital gains is the reason why Warren Buffett's tax rate is lower than the tax rate paid by middle-income families (including Buffett's secretary). Except that when Buffet pays capital gains on sales of stock, he already effectively paid taxes when the companies he owned paid taxes. Stock owners are part owners in a company. In Buffet's case often a rather large part. When your property pays taxes it impacts you. Also many middle class people pay less then 15% in federal tax, their top marginal rate might be higher, but the percentage of the income they pay is often less. See gregmankiw.blogspot.com And note the rates there are for all federal taxes, not just income tax. All of which is irrelevant to the point that the tax cut was for everyone (all income tax payers, obviously if your not paying income tax an income tax cut doesn't help you), it wasn't just capital gains rates that were cut.

To: Broken_Clock who wrote (50162)	8/4/2013 3:01:10 PM
From: i-node	Read Replies (4) \| Respond to of 85487

>> Capital gains are for the upper 20%, and more specifically for the upper 1% of society. You evidently don't comprehend why the favored treatment of capital gains exists. I explained this a year or so ago in the first half of the link below. There is a very good reason capital gains receive favorable treatment, and it is no way limited to the top 20% or 1%. Tax-favored treatment of capital gains and the derivative code sections are fundamental to anyone who has ever sold ANYTHING at a profit, whether stocks, homes, or an old trinket inherited from a great grandparent. Message 28481280