Six Reasons Why the Capital Gains Tax Should Be Abolished

The correct capital gains tax rate is zero because there should be no double taxation of income that is saved and invested. This is why all pro-growth tax reform plans, such as the flat tax and national sales tax, eliminate the capital gains tax. Unfortunately, the President wants to boost the official capital gains tax rate to 20 percent, and that is in addition to the higher tax rate on capital gains included in the government-run healthcare legislation. www.freedomandprosperity.org

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[worldnewsbbc1]

There is not double taxation of income that is saved and invested. You buy a stock for $100. Your basis is 100. The stock goes up to 110 dollars. You are taxed on $10. The initial 100 is untaxed.

[grkameeni420]

Sorry, but your double taxation bit is incorrect. There is never a case where a dollar of income will be subject to the capital gains tax, the corporate tax, personal income tax, and estate tax. If you invest in something and sell it within your lifetime, you pay personal income tax on the part you invest and cap gains tax on the return. Thus, each dollar you receive from this investment is taxed once at your level (there is some double taxation with the corporate income tax,

[gblackmon84]

BULLSHIT!! If Warren Buffett buys 100,000 shares for $1 each, that $100K that he used is already post-tax money, NEVER TO BE TAXED AGAIN. If he sells his shares 5 years later for $500K, he isn't taxed on the $100K just the $400K profit at the cap gains rate of 15%. If the value of the shares stays the same and he gets back $100K after 5 years, he pays NOTHING.

The dividends argument is even weakr, since my employer also pays taxes before he pays me. I don't complain that I'm gettn double taxed

[medlock01]

@worldnewsbbc1

Except the company who earned the money which allowed the stock to go up is taxed at the corporate level.

Didn't you watch the video? Capital gains are not beneficial to the economy, just the opposite. Instead of worrying the government doesn't have enough, how about worrying that businesses aren't getting enough investment capital and retired people aren't making enough on their investment assets.

[BrandonCRC]

@kurgen99 Not everyone who invests is super wealthy, you would realize this if you weren't an idiot.

[DONGOE]

@Teadon86 - "your kind of people" - what exactly is my kind of people? That's an ignorant comment. If you want to pay more taxes, feel free to pay more, but l feell that the people who spend our tax dollars are wasting a huge percent of our tax dollars. I, therefore, want to see them get their spending of OUR tax dollars under control

We are waaaay over taxed; anyone who doesn't agree with that should have the option to pay more, but don't force those who don't to do so.

[Teadon86]

I still guess that if your kind of people, let us put it like that, would run the government you still would put down tax on people because you suddenly realised that people understand and feel the need to pay taxes for security, healthcare, army, a judicial system, education and public goods.

[durhamdf]

@mehseemeh This is how it probably should be, but the argument to have a lower capital gains rate was that it encouraged people to invest in the stock market which was good for growth. The second argument for the lower rate was that it is a double taxation since the money invested had already been taxed at the normal income rate when they originally earned it. The problem with that second argument that worldnewsbbc1 mentions above is that they aren't taxed on the principle, just earnings on top

[DONGOE]

What gives the government the right to tax anything and everything?

The people need to get the government under control.

WAKE UP AMERICA !!!

[mehseemeh]

Okay I'm just an ignorant college student but, why don't we just add capital gains to income at the end of the year? So if you make 30,000 working and 15,000 in capital gains, you pay tax on 45,000 instead of one percentage on work and the other on gains?

[DillonDee1]

Please dont buy into this guy's sorry-ass BULLSHIT!

I have had Capital Gains in most tax yrs, but it's just as likely that instead of being taxed double on CG it's just as likely that I'm not taxed at all

Say - 10 yrs ago my wife & I bought a house for $500K & sell it now for $1M - we have a $500k cap gain TAX FREE!

Say - 20 yrs ago my dad bought a farm for $500k & I inherited it last yr & sell it for $10M - I have over $9M CG TAX FREE!

i could go on!

[Eterna1snow]

@nrshaffer21 BTW, taxes, by definition, mean that SOMEBODY has to get stolen from. Why should the middle working class have to pay but a BILLIONARE doesn't have to?