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Should capital gains be taxed like any other income?

  • Why threat capital gains different?

    I believe every way of earning income should be treated the same way. Of course investments helps the overall economy, but the same can be said about all forms of making money. When one way of making money is taxed less then other ways of making, the incomes no longer reflect the value they create via the prize system.

  • Capital gains should be taxed like ordinary income.

    - capital gains being taxed same as ordinary income would help level the playing field
    - capital gains are long term investments (> 1 Year), but college and other training is also long term investments
    - higher taxes on capital gains will discourage investment is like saying college is not worth it because they will get taxed too much when they get out
    - capital gains have a significant portion of gains is just inflation, but ordinary income is generated from a lifetime of training and experience over time
    - capital gains does not have to support the social security safety net, while a typical ordinary income has payed close to 15% between the employer and employee
    - capital gains are doubled taxed, but corporations receive many benefits in exchange for being a corporation
    - would be willing to further lower corporate taxes if companies were no longer offer stock options to executives, proper enforcement of anti-trust laws, more reserve requirements on bigger companies to prevent “too big to fail’

  • Necessary for development

    The tax is necessary, for the development. The tax are not taken for an individual, but for the country. It is spent on the country. The development in the country is based upon the taxes. The income of the country is based on the taxes, So taxes should be paid.

  • Why threat capital gains different?

    I believe every way of earning income should be treated the same way. Of course investments helps the overall economy, but the same can be said about all forms of making money. When one way of making money is taxed less then other ways of making, the incomes no longer reflect the value they create via the prize system.

  • Tax It, But Not Like Ordinary Income.

    Capital gains come in various forms, but what seems to be the focus so far are gains made from market investing. Therefore, we will be discussing capital gains from investments in stocks, mutual funds, ETFs, etc..

    1) The principle investment has already been taxed.

    These investments are made with after-tax income. Meaning that the money used to make the investments have already been taxed at the Federal and State level. By far, the majority of Americans who invest in equities and funds are working class people who work hard for their paychecks. These paychecks are taxed and what is left over is what they use to survive, save, and invest. Investing apps like Robinhood have even brought commission-free trading to the masses which makes it even easier to invest for the non-professional trader. Among the newest members to the investing community: college students.

    2) Most investors are regular people who need more of their own money to survive.

    The image of all traders being Wall Street "fat cats" who make millions with other people's money is simply not true. The average investors are the people around you every day. A lower Capital Gains tax rate means that hard-working Americans will be able to keep more of their own money.

    Trickle down economics doesn't work. What does work is finding ways to help out the working class by keeping money in their pockets, where it belongs.

    3) Risk.

    Capital Gains are only earned by taking a financial risk. Market speculation does not guarantee any return and may result in a loss of principle. This is unlike a job where people trade time and talent for a guaranteed dollar amount. In the market, there are no guarantees.

  • No, if you Need More Money Raise the Estate Tax or Income Tax on the Wealthy

    Taxes must have several purposes: they must be fair, must collect sufficient revenue, must not be immensely complex and must incentivise behavior that is good for the economy and general society. I personally think that a capital gains tax satisfies all of these with the exception of incentives. We need lots of incentives for businesses to invest in our economy, just like we need sufficient aggregate demand. As such, we certainly do not want to make investors even more cautious to invest. On the other hand, if we raise the income tax on the rich during economic stagnation or decline and warn them about it 6-12 months ahead of time, then we could not only collect more revenue but could also make them invest more in the time before the increases are made.

  • Income includes capital gains.

    I don't support taxes, but I think if income is going to be taxed, then so should capital gains. Income is surplus value created from doing transactions or investments, and capital gains are surplus value created from investment returns, so capital gains are income. Therefore, they should be taxed in the same way as income.

  • Capital gains should be taxed at a small amount.

    Investing helps the overall economy. This is why people should be encouraged to invest and not have to pay taxes on the money made. A counter argument is that less fortunate people need the money more than investors. Yet the better the economy, the more comfortably people can live. This is why capital gains should not be taxed.


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