<p>Of course, if labor income were subject to income tax, but capital gains were not taxed at all, expect more shenanigans than there are now where people’s compensation is somehow manipulated into being capital gains instead of labor income. And then expect more complicated tax rules to prevent such things (some of which we see today in the rules regarding employee stock and option compensation).</p>
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<p>So you are telling me that Silicon Valley is more important to the country than MS. Let’s say the median household income of SV is double that of the MS households. Last time I checked the two senators were leading the charge to grab more money from the richer households and hand it over to the poorer ones. </p>
<p>On the one hand you advocate the rich such as the SVers should pay more to the poor like the MSians, and then you complain that the first group, despite being more useful to the country, is being shortchanged by the Feds. Would you support measures that rich in SV ought to part with less of their income to the Feds so that receive/give fraction comes closer to a 100%? </p>
<p>This whole argument of CA being in financial doo doo because of the Feds sounds like a professional athlete facing bankruptcy because he can’t pay for all his mansions and Porches complaining it’s because the Feds haven’t given him back what he’s paid in taxes.</p>
<p>“Would you support measures that rich in SV ought to part with less of their income to the Feds so that receive/give fraction comes closer to a 100%?”</p>
<p>No.</p>
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<p>Your opinion only.</p>
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<p>You tell me - you’re the one trying to make a point.</p>
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<p>You tell me - you’re the one trying to make a point.</p>
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<p>Those earnings are taxed at the corporate level. That’s the double
taxation.</p>
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<p>Fine with me. Pay it at the corporate level</p>
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<p>We could charge taxes on the air that you breathe. It’s all arbitrary.</p>
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<p>Capital gains + corporate taxes. Pretty easy answer.</p>
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<p>Time zones.</p>
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<p>But corporations would be paying the corporate taxes - who cares about
capital gains?</p>
<p>As it is now, the wealthy put their money into trusts that generate
dividend income so those capital gains taxes are never seen anyways.
It’s just the double taxaction on corporate earnings and dividends.</p>
<p>I explained why capital gains may not be double taxed…Why capital gains are not double taxed…using your link.</p>
<p>Your replies are cute…</p>
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<p>They’re double-taxed for me. And investors in general. No need for it. Unless you’re an accountant.</p>
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<p>Meaningless.</p>
<p>How are capital gains double taxed for you?</p>
<p>Show me.</p>
<p>Intel pays corporate taxes, I pay capital gains when I sell.</p>
<p>That is not double taxation.</p>
<p>I explained that already.</p>
<p>I’m taxed twice on it. Actually three times as I pay taxes on dividends too.</p>
<p>There is no need for a capital gains tax.</p>
<p>Ok…I have to work now… ;).</p>
<p>Toblin - thanks for post #27. Most definitely I think it has something to do with it. I recently moved to NJ and we are constantly astounded by the pensions in the public sector, the unbelievable double-dipping that goes on, the stockpiling of sick and vacation days, etc. Christie managed to cap the crazy property taxes but now the towns – faced with the exorbitant salaries, benefits and pensions of municipal workers – are simply tacking on fees to residents. It never stops. </p>
<p>Is the public sector the only culprit. No. But they’re not angels, that’s for sure. Greed lives in the public sector just as surely as it thrives on wall st. At least the finance people are pretty frank about their greed.</p>
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<p>I’ve been working for several hours already. Someone has to actually make real products in this country.</p>
<p>Yeah…I have been working for a few hours myself.</p>
<p>We don’t make anything here.</p>
<p>But our short term income is taxed at long term capital gains rates…</p>
<p>And we might sell the company…and we must be doing something right…we aren’t paying capital gains taxes on income already made. No double taxation here…if we are lucky and even have capital gains.</p>
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<p>I couldn’t tell by how much you’re posting.</p>
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<p>You should work on that.</p>
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<p>Go for the NH model.</p>
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<p>Way to go.</p>
<p>"> But our short term income is taxed at long term capital gains rates…"</p>
<p>We pay 15 percent federal instead of 35%.</p>
<p>I don’t know if company will be sold or whether this will be good for me…very questionable.</p>
<p>But the process is interesting.</p>
<p>I say tax corporate profits and skip the cap gains. If people want to play financial games, let them.</p>
<p>Then I guess we would be taxed at zero.</p>
<p>If you are in the business of buying and selling houses, perhaps after making improvements to them, the IRS considers you to be in business and not making investments, and therefore your income loses capital gains treatment - it just becomes regular income.</p>
<p>Why should it be any different for people in business buying and selling stock, or any other “capital” asset? You are not investing, so you should not get preferential capital gains treatment.</p>
<p>But we do…</p>