Quote Originally Posted by SLP View Post
That is simply not true. There are no people in the highest brackets that pay only 15% of their earned income. What you are referring to is a 15% tax rate of dividend income which is entirely different. That 15% is actually a double tax, which has already been taxed once at the corporate rate. So any dividend income has been taxed at a corporate rate of somewhere between 15-35%, then taxed again with an additional 15% for the individual.

Do we really want to discourage investment in this countries economy? If we do, it will slow the economy further, which in turn results in less tax revenue. Individuals which take risk and invest in corporations would dry up dramatically if things like dividends and capital gains are viewed and taxed the same as guaranteed earned incomes.

I know saying the rich only pay 15% makes for a good soundbite but it is not an honest argument. What next, tax free bonds? Should we do away with those as well? Using your logic tax free bonds is the most unfair of all?
I AGREE completely with what you're saying, but you are a little off. I don't think it is double taxed.

In my case I buy some stock on the open market.........not a crap ton of stocks but I probably spend 1k a year adding additional pieces to my stock portfolio..........WHENEVER I have some extra money and I want to add, I generally ADD it there.

That 1000 is after tax.....so yea, I was taxed on it, but only the GAIN, meaning the value I made off of the sold instrument is taxed, and that is taxed and different rates. Say that 1000 dollars was invested in something that tripled in value, making the value now 3000. I made 2000, so that 2000 is taxed.

If I choose to sell that in the FIRST year of ownership, that is considered a short term gain and is taxed at my regular income rate.

If I choose to hold it and ride it out and have it for 1 year or more, then that is a long term gain and is taxed at 15%.......this is where the 15% for Mitt Romney comes from.

This may not be exactly right...but it is pretty close.

I hope this helps.

Later,

Geo