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The Most Important Tax Break No One Talks About

Discussion in 'BBS Hangout: Debate & Discussion' started by redlawn, Nov 15, 2012.

  1. redlawn

    redlawn Member

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    http://www.theatlantic.com/business...ak-is-the-one-that-nobody-talks-about/265308/

     
  2. David Stern

    David Stern Member

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  3. juicystream

    juicystream Contributing Member

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    Capital gains rate should be a 10% discounted rate. Most people are in the 25% bracket, and would see a 15% rate. Those people in the 35% bracket would be at a 25% rate.

    This is ignoring that I think rates should go as high as 50%, unless we eliminate deductions.
     
  4. SamFisher

    SamFisher Contributing Member

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    I'd say keep it the same as ordinary income, it's simpler and you eliminate the incentive to shift into one or the other, and there's not really much evidence that a low CG tax rate has an appreciable effect on I, according to the emprical evidence
     
  5. Major

    Major Member

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    Interestingly, Reagan is the only President in modern history to actually raise the cap gains rate to match the individual income tax rate - and as SF pointed out, it had no negative effect on investment.
     
  6. thadeus

    thadeus Contributing Member

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    Great, and sensible, article.
     
  7. Brandyon

    Brandyon Member

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    And the only downside was tripling public debt.

    I, like many others right now, would prefer seeing the corporate tax rate to be completely eliminated. Tax profit by increasing capital gains/dividends tax to offset the loss, in line with a progressive tax rate on all individual income.

    It became pretty clear to me personally when Henry Paulson was able to sell $500 million in Goldman Sachs stock, tax free, that we had a serious problem.
     
  8. Classic

    Classic Member

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    yeah, well...duh

    Mega corps enjoy massive tax breaks and their share holders enjoy ultra low taxes

    Our government is subsidizing multi-national corps and their shareholders at the expense of the federal debt = the middle class

    C'mon Obama...
     
  9. meh

    meh Contributing Member

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    I thought this was talked plenty this election because of Romney. Certainly much more in the public eye then before. And it should be treated like all other income. Why would it be any different whether you make money from working or otherwise?
     
  10. juicystream

    juicystream Contributing Member

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    I'm actually more a fan of qualified dividends at a lower rate than anything else. A discount for already taxed income. Alternatively only making a certain percentage of dividends taxable. They have a dividends received reduction (70% for < 20% ownership) for C-Corps, so it would be the same idea, at a lesser percentage for individuals.

    Obviously would be easier without special rates. I don't want to be totally out of a job though.
     

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