The problem is that this is a tax increase on capital investment, which the U.S. already taxes at prohibitive rates thanks to our high corporate tax rate of 35%. Capital gains and dividends are taxed twice, first as corporate profits and then as payouts to individuals. Their real capital gains tax rate is closer to 45% than 15%, which is why politicians of both parties have long supported a capital-gains rate differential.
One of the Republicans need to make this crystal clear to the public who have no idea that a capital gains tax is a SECOND tax of income that has already been taxed once. None of the Dems would ever reveal that FACT to the base they want to keep fired up.
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
When Obama says the rich pay at a lower rate than a secretary it's just not accurate. Yes, we know he's talking about capital gains, but a secretary pays the same long term capital gains rate as a rich person at 15%. For short term capital gains, the rich pay a much higher rate since it's taxed the same as regular income.
And if the secretary has lower income and is in the 10% or 15% tax bracket after deductions, the long term capital gains rate can be 0%. That's a "loophole" not available to the rich.
And saying the wealthy don't pay their fair share of federal income taxes is also laughable.
pineinthegrass wrote: When Obama says the rich pay at a lower rate than a secretary it's just not accurate. Yes, we know he's talking about capital gains, but a secretary pays the same long term capital gains rate as a rich person at 15%. For short term capital gains, the rich pay a much higher rate since it's taxed the same as regular income.
And if the secretary has lower income and is in the 10% or 15% tax bracket after deductions, the long term capital gains rate can be 0%. That's a "loophole" not available to the rich.
And saying the wealthy don't pay their fair share of federal income taxes is also laughable.
Of course this "tax the rich", they don't pay a fair share demagoguery is inaccurate. Too bad we can't have a rational discussion about tax reform or capital gains tax rates without this demagoguery.
Actually 15-20% is about what most countries have for Cap gains. Some countries tax 1/2 of cap gains at ordinary rates. Some tax cap gains at 0%. We are not really out of the ordinary.
But most Obama supporters probably don't even know what capital gains are. They are more likely to understand the EITC, food stamps, extended unemployment, welfare, and school lunches.
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
