I entered the workforce 7 years ago making 33k a year. I've worked my way up little by little to make about 44k now. Besides the social security nonsense that I'll never get back, there's capital gains. I save a lot and invest here and there. I managed to make $92 in interest for savings and about $140 in capital gains from securities. My barely middle class income didn't stop the Fed from hitting me with a 15% tax on those returns. That's in addition to a 14% income tax on my gross wages and 1.5% tax under the name of Medicare. And to top it off, I'm getting hit again with state taxes at the end of the year. Enough is enough! Stop taxing those who are trying to better themselves to support those who refuse to do so.
Capital gains are typically the way those in the upper echelons of this country's economic hierarchy. Capital gains taxes, if anything, should be raised to reflect the ability to pay of those most in receipt of capital gains. It is morally reprehensible and logically bewildering that the middle-class in this country defend, with so much enthusiasm, pursuits of the wealthy-few-landlords of America in their drive to control more and more of the resources, that the middle-class themselves are paid what, by comparison, is a pittance, slave wages for the lower-class. And it is even more repugnant that the same middle-class allows itself to be used as middle-men, between the have and have-nots, attacking low income citizens, decrying them as welfare-moms or lazy, looking for a handout when, in reality, the upper-class is far more guilty of receiving and far less in need of government handouts. The greatest difference being that those with capital wealth are in a position to define not only their own existence but the existence of everyone beneath them.
Capital gains are income, and although some argue that the money used to invest in assets that derive capital gains is double taxation, that would be true for many taxes. For example sales tax is a tax imposed when you buy something with money that has already been taxed. The issue is not where the revenue comes from, it's the fact that we keep needing more because of our uncontrolled spending - that is where effort needs to be put. Stop the excessive spending.
When people make lots of money on their investment gains, they should owe a tax on it. This is because they are relying upon the very system we have in place in order to reap the reward. Their money only makes money because everyone has collectively invested in education, infrastructure, a court system, and other parts of a well-governed society that make commerce possible. No one makes money on their own, and when you make money, you need to expect that some of it will be taxed.
I had to pay capital gains taxes as much as the next guy, but they are fair.
In this country if you earn money you pay taxes on it, just because you earn it from making an investment doesn't mean you should be freed from paying taxes like a fellow American working a union job.
Everyone needs to pay their fair share.