Free Republic

Some budgeteers argue that the 15% tax rate on long-term capital gains should be raised as part of efforts to cut the federal deficit. Do you agree? Yes. This is the primary reason that income inequality has grown in the U.S. No. A low capital gains rate is the key to encouraging investment in our economy. Not sure

One of the many false talking points of the Obama administration is that a rich man like Warren Buffett should not be paying a lower tax rate than his secretary. But anyone whose earnings come from capital gains usually pays a lower tax rate. How are capital gains different from ordinary income? Ordinary income is usually guaranteed. If you work a certain amount of time, you are legally entitled to the pay that you were offered when you took the job. Capital gains involve risk. They are not guaranteed. You can invest your money and lose it all. Moreover, the...

Under Paul Ryan's plan, Mitt Romney wouldn't pay any taxes for the next ten years -- or any of the years after that. Now, do I know that that's true. Yes, I'm certain. Well, maybe not quite nothing. In 2010 -- the only year we have seen a full return from him -- Romney would have paid an effective tax rate of around 0.82 percent under the Ryan plan, rather than the 13.9 percent he actually did. How would someone with more than $21 million in taxable income pay so little? Well, the vast majority of Romney's income came from...

In 1992, the 400th richest person in America made $24 million. In 2007, the 400th richest person in America made $138 million (or $87 million, inflation-adjusted). Now, that almost certainly wasn't the same guy. There's a lot of churn at the top of the money pyramid. In all of the 1990s, only 25% of the Fortunate 400 made more than one appearance. But the overall message is the same. The rich keeping getting richer. According to the IRS, which recently released 2009 data from the 400 richest individual income tax returns, the real runaway growth in wealth has come from...

President Obama on Monday reiterated his push to extend the Bush Tax cuts for the middle class but not the 2% of U.S. households making more than $250,000. But millions of middle class Americans are at risk of higher taxes if no action is taken before Jan. 1, notes Josh Brown, vice president of Fusion Analytics and author of The Reformed Broker blog. Specifically, Brown is concerned about the sharp rise in taxes on dividends and capital gains that will occur as part of the so-called fiscal cliff -- or "taxmageddon" if you prefer. If Congress fails to act, the...

In the ongoing presidential campaign, we may expect a handful of broad themes to receive the overwhelmingly greater fraction of the Democrat propagandists' efforts: "Republican war on women" "The 1%" "Fairness" The "fairness" canard is, of course, aimed at cowing the GOP's Congressional caucus, its candidates, and the electorate into bowing to higher taxation. In this connection, the Democrats' dominant meme has been that "millionaires and billionaires" are somehow evading paying their "fair share" of federal taxes, and that this contributes to the immense Obamunist deficit. Let's see if I can make this as striking as it always was at...

Taxes: The Senate hasn't passed a budget in over a thousand days, yet it has time to consider one member's bill to make the no-growth logic of the administration's favorite billionaire the law of the land. Senate Majority Leader Harry Reid, Democrat from the state ranking among the highest in foreclosures and unemployment, would prefer leaving the ship of state to drift rudderlessly. "We do not need to bring a budget to the floor this year — it's done, we don't need to do it," Reid told reporters Friday. Reid's idea of getting things done is punting to a supercommittee...

Would the Steiger amendment benefit chiefly the rich, as the President says? Not really. Undeniably, a cut in the capital gains tax below the present top rate of 49% would help mainly people in (or above) the 50% tax bracket, who are more likely to own stock and other assets. To be in that lofty bracket, one needs taxable income of about $40,000 or more. But a lot of "average" taxpayers leap into the higher brackets a few times in their lives—when they sell a house, a farm, or the stock that Aunt Tillie left them; or when they collect...

Cashed out approximately $45K of JP Morgan Chase stock due to the blatant cronism between it and Obama. Need info on where to send copy of trade confirmation and explanation of decision to get rid of stock. Thoughts/info in this regard are appreciated. Thanks.

As if battered investors needed more abuse, they are in for a rude awakening at the end of the year. SNIP The most dramatic change will be in the taxation of dividends. Who doesn't love big, stable dividend-paying companies in these uncertain times? Well, you may have to adjust your portfolio as the tax on dividends will rise from the current Bush-era maximum capital gains rate of 15% to a Clinton-era maximum income-tax rate of 39.6%. While Obama had proposed a 20% tax on dividends as an alternative, that now appears unlikely given budget rules enacted by Congress. Speaking of...

Certain ideas get so firmly fixed in some folks' brains that no amount of evidence can dislodge them. Such ideas become articles of faith. And one article of faith that is particularly deeply stuck in the minds of "the faithful" is that Reaganomics doesn't work. The big idea behind Reaganomics is that cutting tax rates boosts the economy, which results in more tax revenue. The history of the last three decades bears this out. The faithful have tried to disprove Reaganomics by contending that the 1993 tax rate hike is what gave us the good economy and the balanced budgets...

President Obama is hanging out to dry all by himself as ECB president Jean-Claude Trichet, German Chancellor Angela Merkel, and British Prime Minister David Cameron are all wisely going ahead with austerity measures instead of the stimulus measures that Obama and his Keynesian clown advisors want.

Dmitry Medvedev, the Russian president, said Moscow was bidding to help lead efforts to build a new world economic order after the old system collapsed in the global financial crisis. Opening Russia’s annual economic forum in St Petersburg where hundreds of global chief executives have flocked, Mr Medvedev said the renewed interest in Russia this year was a sign of a changing world in which the institutions of the western-dominated world order had had their day amid thousands of corporate defaults and the threat of sovereign defaults. EDITOR’S CHOICE Economic woes bring Russia and EU closer - May-30Russia eyes deep...

From a stock market standpoint, the combination of tax changes due to take effect at year-end seems to be the worst of both worlds. For those with both short-term and long-term gains, their taxes are set to rise, providing an incentive to take profits. Further, because of the increase in taxes on long-term capital gains, those with short-term gains will have a reduced tax incentive to hold on to their positions for a full year and convert them to long-term gains. Investors holding gains on positions established in 2010 face a choice: sell this year and face a 35% income...

President Barack Obama's new health-care legislation aims to raise $210 billion over 10 years to pay for the extensive new entitlements. How? By slapping a 3.8% "Medicare tax" on interest and rental income, dividends and capital gains of couples earning more than $250,000, or singles with more than $200,000. The president also hopes to raise $364 billion over 10 years from the same taxpayers by raising the top two tax rates to 36%-39.6% from 33%-35%, plus another $105 billion by raising the tax on dividends and capital gains to 20% from 15%, and another $500 billion by capping and phasing...

Bull markets always have to climb a wall of worry. This one also will have to climb a stairway of tax hikes. Democrats' health care overhaul (including the still-pending reconciliation bill) nearing the finish line would apply a 3.8% Medicare tax on investment gains earned by upper-income households starting in 2013. Along with a partial expiration of 2003 tax cuts at year-end, rates on long-term capital gains and dividends are due to jump in two steps from 15% to 23.8%. The big shift in tax policy is one that could raise the barrier to saving and investment in a savings-short...

Bull markets always have to climb a wall of worry. This one also will have to climb a stairway of tax hikes. Democrats' health care overhaul (including the still-pending reconciliation bill) nearing the finish line would apply a 3.8% Medicare tax on investment gains earned by upper-income households starting in 2013. Along with a partial expiration of 2003 tax cuts at year-end, rates on long-term capital gains and dividends are due to jump in two steps from 15% to 23.8%. The big shift in tax policy is one that could raise the barrier to saving and investment in a savings-short...

President Obama continuously tries to portray himself as a friend to the little-man, middle class and small business. Hence his attacks on “fat cats” who “just don’t get it,” while labeling the extravagant bonuses as “obscene,” and “the height of irresponsibility.” Meanwhile, members of his administration, in defending a sweeping small-business aid program Obama announced in his State of the Union, give reason to wonder if they really understand how to help small business. Among the administration’s proposals for small businesses are a $5,000 tax credit to hire new workers, elimination of capital gains taxes, and new incentives to invest...

Taxes: On the eve of President Obama's first State of the Union address, two Democratic congressmen are advising him to extend the Bush tax cuts instead of letting them expire. Now that's a stimulus. We hear that the administration is considering taking a more populist tack as it sails the choppy political waters of 2010. Some of President Obama's plans reportedly include several tax tidbits for the "middle class," including a doubling of the child care tax credit for families below $85,000 in income, and $1.6 billion for child care and a cap on student loan payments. Such transparent populism...

President Obama recognizes the powerful positive economic impact a capital gains tax cut would have for small business owners—so why not give it to every American family and business in order to encourage growth and success? President Barack Obama’s budget for 2010 presented a number of tax cuts to spur economic growth. Most notably, his budget called for a reduction of the capital gains tax for small businesses. Apparently, President Obama recognizes the powerful, positive economic impact a capital gains tax cut would have for small business owners. Since the cut would be good for small businesses, why would President...