Capital gains is a fraudulent tax.

Capital gains taxes are fraudulent in that they tax gains which may not be real.
The reason for this is that they are not indexed to inflation. An asset which is sold for double its purchase price 20 years after initial purchase is actually just being sold for its inflated value and no profit has actually been realized. The funds you receive for the sale of this asset would only be worth half what the funds you used to purchase them was worth.

Therefore Long Term Capital Gains taxes should be indexed or eliminated all together.

 

Interesting point and I can't disagree.

 

Cap gains should disappear entirely once an asset has been held ten years or more. That they don't is just another example of gov-edu-union-contractor-grantee-trial lawyer-MSM self-enriching theft.

 

Wouldn't that logic apply to all forms of earned interest???

 

Income should not be taxed at all

 

What the hell does inflation have to do with it? You can look that it doubled as an inflation hedge. I agree that the capital gains tax as a separate entity should be eliminated. Whether income is derived from labor, from interest or from investments should have no bearing on what tax rate they are associated with.

In years past you could get 4% bank interest in the 60s, the stock market historically goes up 7% a year. the delta of 3% was not enough for the investor class to chance investments so the government allowed a lower tax bracket on that income to encourage investment. now with interest rates at 1.4% and the stock market at 7% the delta is large enough that the favorable tax rate should no longer exist.

 

So the world has it wrong and you have it right?

 

A gain in valuation is not necessarily gain in wealth.

 

Or maybe you just opened your trap without knowing the difference between direct and indirect taxation, or the history of our country

 

The gov and the FED purposefully erode the purchasing power of the currency and dont tax proportionately. They push you into higher brackets and tax at higher rates for a purchasing power that doesnt increase proportionately.

This is not rocket science

 

What inflation? I think we are at about 1.4%. And the value price of the stock that you are selling it at is also a product of that inflation. If it wasn't for inflation in that case of a doubling over 20 years you would have lost money when you sold it so they would not have even been a profit to tax, again so I don't get the point. If you kept it and it did not increase in value and you sold it for the same price would you have been better off?

 

Note that the capital gains tax rate is 0%, if you are married, filing jointly, and your income is less than $78,750. Thus, this "problem" does not affect the vast majority of taxpayers, most of which have assets in tax-advantaged 401ks, 403bs and IRAs anyway. If you are, however, wealthy enough to have this "problem" I say: Tough luck. Your tax rates have been slashed by the GOP already for decades. Enough is enough. I also say this: Capital gains should be taxed the same as income. And that comes from someone who pays capital gains taxes.

 

Capital gains IS income... It's taxed just like other forms of income.

 

Equities historically outpace inflation. Therefore, it doesn't matter what the asset is valued at 20 years in the future, as most equities are worth far more than their book values.

 

No one is being pushed into a higher tax bracket...

 

Fact is you'd have to look long and hard to find a time when an increase in the capital gains tax rate increased revenue or a decrease decreased revenue.

 

The highest income tax bracket is 37%. The highest capital gains tax rate is 20%. Clearly, tax rates are not the same for capital gains and income.

 

I am sorry if you do not understand inflation and its effect on the value of money.

 

Long term rates on gains on assets held more than a year max at 20%. Not only is the income earned over at least 2 tax years, but the asset showing the gain has already paid corporate taxes.

 

I am not sure where you came up with that senario, but it is wrong.

So far as paying tax on non existant capital gains, that is wrong also.

 

Please stay on topic and do not attempt to derail the post.

 

What are you talking about??????????????

 

Did you say something?

 

Stop making sense!!!!!

 

Not necessarily as many corporations have foreign tax shelters thereby paying ZERO taxes. Capital gains taxes, more often than not, are nothing more than welfare schemes for the elite.