Quote Originally Posted by kydonky View Post
Geo, why would you tax the first 2 mil. at the higher rate and any amount above this at the lower rate?

This would be a little unfair to the small investor and reward the largest investors only. Why not reverse this to the first 2 mil. income at the low rate and the amounts above this at the higher rate? You would have more investors that would translate to more investment. If the small investors were taxed that high rate I would think they would not risk even their small investments.

So I invest $20,000.00, have a return of 8% for a profit of $1600.00. Tax the $1600.00 at 36% would net $1024.00. An investment that returns 8% these days carries risks, I could just as easily lost $1600.00 or even the entire principal. Think I will buy a new Tracker pontoon instead.
I don't have hardly any of the answers.

People BITCH about the rich not paying their fair share. If the "rich" need or want to take income, their ONLY income from gains, then maybe they should have a graduated rate to pay taxes on the first LUMP of it.

Obviously, from most of my other posts I'm against most tax increases, and I really had capital gains taxes.......they are kicking my ass too as a small investor. In my case, I save 1000 bucks, which has ALREADY been taxed, and then I invest that 1000 bucks buying apple stock. When I sell that stock I pay an additonal 20% So I paid 300 bucks initially on the 1000 bucks and then I get to pay 20% on the GAINS that it makes.

That is inherently wrong.

BUT, if the only income I get is from gains, and I'm crazy wealthy, Maybe the initial million or 2 should be taxed as income and the rest as gains.

Like I said. I don't know.

An even better solution would simply be a flat tax period.........on EVERYTHING. GAINS, INCOME, whatever. You make a buck, NO MATTER how, pay the gubment 15%.

I'd take that.

later,

Geo