[jazusamo]

*PING*
Thomas Sowell

Recent columns
Obama Versus Obama: Part I
Obama Versus Obama: Part II
Obama Versus Obama: Part III
Obama Versus Obama: Part IV

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[I want the USA back]

The leftist bastards know what they are doing.They take the public for stupid suckers who don’t know the difference between the taxation for capital gains and “ordinary” income.

[oldbrowser]

Business income is different from employees' income in another way. The profit that a business makes is first taxed as profit and the remainder is then taxed again as the incomes of people who receive dividends.

Let's not forget that the money I used to start a business has already been taxed once as wages, Now my corporation finally makes a profit and I have to pay corporate taxes, now I get dividend income on my investment and I have to pay taxes on in again, but at a reduced rate and they call me greedy?

The only greed is by the overpaid government workers and the able bodied who are to lazy to get off the couch.

[sickoflibs]

This is a very good analysis by Sowell on income versus Captital gains, as he usually does, But this right now is a political battle in a very charged political year.

In such a political context of proposing domestic spending cuts the Dems argument is :”They are asking you to sacrifice while they profit” going right for negative human emotions.

This is a battle that Romney is not well suited for, to win, by nature of who he is. For example Cain was more naturally suited for it by who he is, self made black businessman.

[justlurking]

It's a decent article, but makes the issue too complicated.

Special treatment for long-term capital gains is warranted for at least these two reasons:

• In order to realize a capital gain, you must risk money you already have. Depending on the investment, you are just as likely to lose all of it as you are to realize any gain at all. It's like gambling: you should never risk money that you aren't willing to lose. It's different than a job that pays a wage: the worst that happens with a job is that you have to find another one. With an investment, you may have to start over.

• Long-term capital gains are undermined by inflation. If you invest $100,000 today, that investment must be worth $103,000 in a year to just keep up (that assumes 3% inflation). If you compound 3% inflation over 20 years, that $100,000 investment must be worth $180,000 at the end, just to keep up. And you would still have to pay capital gains tax on that $80,000 "profit", turning it into a real loss.

[jazusamo]

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[Vigilanteman]

Dr. Sowell is fighting dirty again by using facts and logic on libtards. < / sarcasm >

[zeestephen]

Warren Buffet never explains that corporate taxes are directly related to the market value of his stocks.

If we suddenly passed a law that ended ALL corporate taxation, the price of Buffet’s stocks would EXPLODE to the upside.

In reality, the 15% capital gains tax is simply the “LAST” tax that Buffet currently pays.

In reality, his stock has already “paid” billions of dollars in corporate taxes before that money ever gets to his front door.

[21twelve]

An oldie but a goodie. Cartoon from 1948 “Make Mine Freedom”. Talks about capitalism, and investments.

http://www.youtube.com/watch?v=je1-2gxioS8