Quote:
Originally Posted by zimmy
Right, they take risk employees don't. They take a risk they cant afford to take. They make money by being in the business of risk taking. It is income. There are lots of ways it could be more equitable through a similar progressive tax system that already exists on dividends so that typical Joe schmo can invest. Now what we have is a system where a portion of the truly wealthy can borrow at a low rate, invest it and earn , 3-4% on that money and pay less in taxes than the actuary just getting by with 2 1/2 kids and a recently purchased spaceballs Winnebago (good choice by the way, I bid on the dark helmet) pays in income tax.
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"they take risk employees don't."
Correct.
"They take a risk they cant afford to take."
No one said anything about whether or not they can easily afford it.
"They make money by being in the business of risk taking. It is income"
Correct. And capital gains taxes are the cost of being in that business. The principles of supply and demand say that the less something costs, the greater the demand will be, for that something. Our economy absolutely depends upon businesses having access to the capital they need, and providing that capital involves risk. I have no problem taxing that stuff at rates lower than ordinary income.
"and earn , 3-4% on that money and pay less in taxes than the actuary just getting by with 2 1/2 kids and a recently purchased spaceballs Winnebago "
That's true, and it doesn't bother me at all. I have 3.0 kids, by the way, and my RV is a Flagstaff, otherwise I agree with you.