Obama's deficit Reduction PLAN

[DRSmith]

I just don't agree with this line of thinking. I've worked hard for all the money I've earned and it still makes me seeth when I cash out Roths or other investments so the gov't can tax me again on money I've already worked hard to gain. I know you're a union loyalists and how are they not (regularly) taking from others?

I work for my money, I pay dues for services rendered and for future services like I did with a lawyer.

If the government gave tax incentives for those investments than they are just getting the money and the interest made was done through the work of others.

[Larry]

Money that people work hard to earn is not the same as money that is earned by taking from others or profiting from the labour of others.

I just don't agree with this line of thinking. I've worked hard for all the money I've earned and it still makes me seeth when I cash out Roths or other investments so the gov't can tax me again on money I've already worked hard to gain. I know you're a union loyalists and how are they not (regularly) taking from others?

I suspect that what DrSmith is badly attempting to express (or let's leave him out of it and simply say that my point is) is that he thinks that there's something wrong with the picture where:

If a guy earns a million dollars, then the government will take 35% of it.

But if the guy got a million dollars of unearned income, then the government only wants 15%.

To me, income should be treated as income, whether it's earned, or from investments, or, say, inherited. It's simply income.

[The Sisko]

I think the tax on investments and interests should be raised dramatically, and then look at lowering the tax on income.

Money that people work hard to earn is not the same as money that is earned by taking from others or profiting from the labour of others.

I can understand why this might sound like a good idea to you but in reality it's just a horrible one. Savings and investments provide the capital to create and grow businesses and hence economic growth. Likewise, savings and investments also allows individuals to plan for the future and ride out the inevitable personal/economic downturns. While I agree that perhaps tax rates on investment income could be part of the solution to getting the budget in order, I doubt anyone wants to see something punitive enacted either. Heck, our savings rate is way too low already.

[hkHog]

I think the tax on investments and interests should be raised dramatically, and then look at lowering the tax on income.

Money that people work hard to earn is not the same as money that is earned by taking from others or profiting from the labour of others.

Great idea, let's make sure that people who make a lot of money just hoard it and never invest in anything that might, you know, create jobs or wealth for others :doh:

[Larry]

Great idea, let's make sure that people who make a lot of money just hoard it and never invest in anything that might, you know, create jobs or wealth for others :doh:

Right, because everybody knows that really wealthy people, if given a choice between a slightly smaller return on their investments, and zero return, will choose zero.

[DRSmith]

I can understand why this might sound like a good idea to you but in reality it's just a horrible one. Savings and investments provide the capital to create and grow businesses and hence economic growth. Likewise, savings and investments also allows individuals to plan for the future and ride out the inevitable personal/economic downturns. While I agree that perhaps tax rates on investment income could be part of the solution to getting the budget in order, I doubt anyone wants to see something punitive enacted either. Heck, our savings rate is way too low already.

But this would stop the dramatic price raise in houses that were sold by flippers, it would encourage long term investing in companies and stability since you would not have people buying and selling stocks as day traders. And I think as trade off for retirement you could say you could draw out the money tax free but you do not get social security and greatly reduced medicare benefits

[hkHog]

But this would stop the dramatic price raise in houses that were sold by flippers, it would encourage long term investing in companies and stability since you would not have people buying and selling stocks as day traders. And I think as trade off for retirement you could say you could draw out the money tax free but you do not get social security and greatly reduced medicare benefits

Unless you own the investment FOR OVER A YEAR any money you make is taxed as income not capital gains!!! Day traders have never been able to take advantage of capital gains tax rates

[DRSmith]

Unless you own the investment FOR OVER A YEAR any money you make is taxed as income not capital gains!!! Day traders have never been able to take advantage of capital gains tax rates

From reading some business journals on taxes and day trading there are some ways around the higher tax rates.

The problem with the anti tax crowd is they rely on ignorance and fear to scare people.

Companies will not pass on tax exspenses based on profits to consumers since it is only the profit made that is taxed.

Lower corporate taxes does not increase hiring, increased demand leads to more hiring.

The more money in the lower and middle classes increases demand and creates jobs.

Taxation should be based on what it takes to operate the government