So this is what we learned from Governor Romney. He pays about 14% in taxes because investment income is taxed less than ... regular income? Earned income? Worked for income? I'm not sure what to call it.
Apparently we believe as a society that gambling is more valuable than labor.
Ask any investment broker and they will talk about their investments in the same way a professional poker player or horse race handicapper talks about their--risk, odds, returns.
Sure, Romney and Bain Capital spent a lot of time researching and working on which investments to make, and how to make those investments. So does a professional card player.
They risked their money, and made a profit much of the time, and so their income is considered investment income, and gets lower taxes.
The idea I've been told is that lower taxes on investments help spur the economy by creating pools of capital that are used by businesses to hire, grow, add jobs, and pay the rest of us.
Except not all investments do that. Investments that bet on business closings, making companies more profitable by outsourcing, playing with commodities or day trading and making money on the changes in stock values that are milliseconds apart does little to help the overall economy or society, but we still tax those investment incomes less than we tax the income of soldiers, doctors, or the people who actually make things or do stuff.
Well, why can't we get in on this investment income stuff. Instead of a salary, why don't we demand to be paid in a special investment hourly stock.
The stock is worth $.01 when I get it. I get one share for each hour I work. At the end of the week/month/whatever my company will buy back that stock for what my hourly wage/salary is. If I do remarkable work, they may even throw in some bonus shares. If I fail to work as I promised, they may cut some of those shares out.
The income generated from the sale of that stock will be taxed as investment income.
Think it won't work, Bian Capital is being investigated because they have certain fees they charge their clients. Instead of reporting these fees as income, they report them as investments. Many companies on Wall Street do this, and expect to get away with it because so many of them are doing it.
Why can't we.
The companies may agree to this because they would pay fewer taxes on our work as well. Unemployment and Insurance, and other details would have to be worked out, but it could be done.
And if the Republican plan to drop investment taxes to 0 is approved, why none of us will be paying any taxes at all.
Then won't we have a great government to protect us.
Posted by Geraine (Member # 9913) on :
Can't tell if serious or......
I mean, technically it could work that way, but there is that pesky little FLSA that gets in the way.
Honestly I have no problems with increasing capital gains taxes, as long as it is taxed only on the profit of any gains made. Those gains should be taxed at whatever rate is appropriate for the amount of money made that year was for the particular person.
Posted by Kwea (Member # 2199) on :