What's the Right's Justification for a Lower Capital Gains Tax?

Why is some income treated differently than other income? Why is this allowance for the wealthy allowed to continue? Does anyone actually believe that it's appropriate?

 

Because those on the right believe rich people should play by different rules and that poor people and the middle class are nothing but parasites and a hindrance on those poor struggling rich people. And also because they still have this faith based economic plan that low taxes somehow pay for themselves and low taxes equal a booming economy....But clear cut evidence says otherwise.

 

It's rather simple. Unlike wages, which are almost guaranteed, there is really no such thing as a risk free investment. If investments were guaranteed a return of 100%, then it really wouldn't matter what the tax rates were. Some investments do not even yield a 50% return. In fact, there was some investments which actually contain something we call, 'losses.'

Investors need something to help convince them to take a risk. Otherwise, they won't.

 

So those of us who works on commission shouldn't pay more than 15%, right?

Investors have this thing called "profit" to help convince them to take a risk.

 

No.

You do realize that profits are no more guaranteed than the return of the investment taking place, correct?

 

You don't pay taxes if you don't make a profit, just like you don't pay taxes on wages that you don't receive.

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You don't pay taxes if you don't make a profit, just like you don't pay taxes on wages that you don't receive.

 

If I'm a salesman, my commission checks are no more guaranteed than a return on an investment.

 

That doesn't make sense. Investors have to put up money in order to reap any of the returns of the business.. If the company isn't profitable, they lose their investment and it cannot be written off. When it comes to wages, if you don't work, you don't make money. If employees do work, they are guaranteed their wages.

Only people who really don't understand business would make an apples/oranges comparison.

 

If you make a sale, you earn commission. If I make an investment, I may get a return. I may not.

It's a really bad comparison.

 

Lower cap gains tax drives higher volumes which renders increased tax receipts. Why would anyone want to reduce the overal revenue generated by cap gains taxes by increasing the rate?

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Lower cap gains tax drives higher volumes which renders increased tax receipts. Why would anyone want to reduce the overal revenue generated by cap gains taxes by increasing the rate?

 

Um...yes, capital losses can be written off. Only people who don't understand business would claim otherwise.

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If I work hard and get lucky enough to make a sale, I get money. If I work hard and get lucky enough to make a good investment, I get money.

 

I'll go ahead and wait for proof of this. Otherwise you're just blowing smoke out your ass.

 

It's pretty simple stuff....

Smart gamblers don't expose themselves to unnecessary risks....
if the vig is too high, they'll find another bookie.
if the rake is too high, they'll find another card room.

translate that to an economy that relies on risk takers to expand. (and thousands of "Global Casinos" more than eager to take their bets for a reduced cut of the take)

 

Yeah, I'm really going to be so glad that when my $100,000 investment fails, that I will be able to write off $3,000.

Are you done making bad comparisons?

 

You JUST said it can't be written off. Why would you lie?

 

What determines a good investment?

 

In my case, it's a rental property that produces 20-30% of its value in rental revenue per year.

 

I forgot I don't invest in America any longer. Either way, writing off $3,000 is almost the same as being able to write off $0 if your exposure is diversified.

 

course they were investing with the higher rates too

I think we do need a new day trader rate to stop market manipulations

 

You said the investment was $100,000. Why are you only writing off $3,000? You clearly don't know anything about business.

 

And what makes you think your property will produce 20 - 30% of value a year?

 

Common knowledge called, but you weren't home.

 

Because I have over 80 rental properties that do just that.

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In other words, you can't prove it. Fair enough, just admit it.

 

Because that's the maximum you are able to write off if your capital gains takes a loss, and that is only if you are not filing separately.

Do you own any capital gains at all?

 

If the entire market operated on the properties you own, you'd have a point, but it doesn't.

What makes you think the property you are investing in will make 20 - 30% a year or any property for that matter?