Why are capital gains so sacred that they, and they alone of all income types, get this special treatment. My salary is worth less every year because of inflation, but the tax brackets don’t automatically adjust downward to take that into account?
In general income earned as salary should be given all the breaks capital gains get. Most income is earned by average Americans working what ever job they have. Most capital gains go to a much smaller portion of the population.
It’s always weird that guys like Grover Norquest somehow manage to focus on the category of taxes that rich contributors have, but the rest of us not so much.
Here’s how the “inflation tax” works today.
The honest thing to do. It has ZERO chance of succeeding. Big loss for the IRS. Even Trump is unlikely to support.
Makes sense to me.
Cruz is now co-writing articles with Norquist of all people?
I think this is a similar discussion, though not 1 for 1 , to the differences between a traditional IRA and a Roth IRA.
On the Traditional your not taxed now but you end up taxed on what you put in AND all your capital gains when you take it out in the future.
On the Roth your taxed on your current income, but the basis is not taxed when you take it out AND any capital gains you earn are not taxed at all when you take it out.