Increase tax on capital gains?

[hornpharmd]

Is this the solution to increasing tax revenue from the wealthy?

www.quickanded.com/2010/02/effective-tax-rates-of-the-richest-400-americans.html

"The second thing to note is that the overall tax rates are really not that high. Contrary to concerns about socialism or a government takeover, the richest Americans, those earning an average of $345 million in 2007, paid about 16.5 percent in federal income taxes."

I looked at my effective tax rate the last 4 years and I have been paying about a steady 20% each year. Seems that I am paying a higher % than most of the wealthiest Americans.

I have a friend who owns a small business and he draws similar comparisons to how much he pays in tax as a % to income compared to what the large corporations pay.

I don't know what the solution is and I am certainly no expert in finance or tax law. Perhaps removing some of these tax loopholes that they often talk about would help level the playing field. I did not used to be in favor of a flat tax but I am starting ot lean that way. Perhaps a flat tax of 20% would make sense.

 

[gecko]

This really isn't that hard. It's not the rates.....it's the loopholes (tax laws).

Our tax laws are designed by pols who want to curry favor with voting constituencies AND influence behaviors of average citizens. We need a tax code that is void of both and designed to raise revenue equal to the amount we need to run the government.

You can jack the rates all you want. Smart people will just figure out how to use the current code to avoid the extra taxation you have pointed their way. Example: If you were to take my tax rate up 5%, I would divert that amount into various tax deferred vehicles available to me. Revenue effect = 0

 

[UTChE96]

Do you really believe only the wealthy pay capital gains?

If you want to tax the wealthy then implement a wealth tax. I am actually happy to support that. Let's see the Buffetts and Rockefellers of the world put their money where their bleeding hearts are. Increasing capital gains or income tax rates is a bone-headed idea that will simply reduce incentives to invest, work output, and productivity.

 

[msdw24]

Increasing the Capital gains tax rate would kick one more leg of support out from under the economy and stock market. Really bad idea.

 

[TexasGolf]

time for a fair tax system

 

[theiioftx]

Increasing capital gains tax will further reduce any incentive to start a new business as well as create a mass sell off of investments.

 

[hornpharmd]

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[ShinerTX]

A great idea to tax further the less-than-half of the population that actually pays taxes.

 

[hornpharmd]

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[UTChE96]

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[dheiman]

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[ShinerTX]

True. Politicians lose some control with a Fair Tax. Thus it is hard to imagine this every taking hold. Much better to manage a social agenda via the IRS.

 

[Longhorny630]

You could tax capital losses, I and a lot of America have had a huge amount of those the past couple of weeks.

 

[UTChE96]

We should also tax foolishness and stupidity. The US would instantly run a surplus.