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Debating with the enemy Discuss politics, current events, and other hot button issues here. |
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#1 | ||
MVP
Join Date: Feb 2004
Location: Seattle
Age: 45
Posts: 10,069
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Re: Whats Fair When it Comes to Taxes?
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GTFOH
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"The Redskins have always suffered from chronic organizational deformities under Snyder." -Jenkins |
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#2 | ||
Playmaker
Join Date: Nov 2006
Location: Richmond
Posts: 3,261
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Re: Whats Fair When it Comes to Taxes?
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Ive read before the reason Capital Gains are taxed at a lower rate is because they have effectively already been taxed. Non-speculative long term equity ownership can/should be thought of as ownership on a firms future profits. Long term increases in the price of a stock are primarily driven by earnings. Speculative or short term equity ownership is not thought as an ownership of future profits and that is why its taxed at higher ordinary income rates. Since the firm is already taxed at the corporate rate taxing profits made from capital gains is effectively double taxation. This is from the taxman himself: Quote:
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#3 | |
Swearinger
Join Date: Sep 2006
Location: Washington, DC
Posts: 12,626
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Re: Whats Fair When it Comes to Taxes?
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I think Mitch Daniels explained it pretty well in his State of The Union rebuttal. To get the rich to contribute more, you don't raise taxes- slowing economic growth. Gotta have tax reform. Close those loopholes from which the rich benefit so much, and means-test entitlements so the benefits of which are going to those who need it most. Makes sense I think.
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Tardy |
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#4 | |
MVP
Join Date: Feb 2004
Location: Seattle
Age: 45
Posts: 10,069
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Re: Whats Fair When it Comes to Taxes?
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"The Redskins have always suffered from chronic organizational deformities under Snyder." -Jenkins Last edited by saden1; 02-07-2012 at 11:09 AM. |
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#5 |
Playmaker
Join Date: Nov 2006
Location: Richmond
Posts: 3,261
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Re: Whats Fair When it Comes to Taxes?
^^ Sorry im just getting back to this. Okay so it sounds like your only beef with capital gain treatment is when it comes to the carried interest rule. I get both sides of carried interest rule but the thing to remember is that there are 2 sides to this complicated rule.
When you have partners of a private equity firm only taking income via selling long term capital gains of shares of the private companies they became vested during the course of their ownership, in the holding company their owners of, its important to remember that corporate income taxes have been, are being, or will be paid on the shares of those private companies they own. Its still a 15% tax on top of actual earnings and future earning valuations. And theres still risk in private equity, i think most would say private equity has more inherent risk then public companies, as the market is much less efficient and illiquid. ^ Warren Buffet's secretary needs to release her tax return if they want to keep this up. What they claim makes no sense. How Rich Is Warren Buffett's Secretary? - Megan McArdle - Business - The Atlantic
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Last edited by mlmpetert; 02-17-2012 at 07:12 PM. |
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#6 | |
MVP
Join Date: Feb 2004
Location: Seattle
Age: 45
Posts: 10,069
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Re: Whats Fair When it Comes to Taxes?
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That is to say all income is passed on to the partners and if they don't hold the assets long term (more than a year) then each partner's take home cut of the profits would be counted as ordinary income (taxable at 35% personal income tax bracket). Of course fat cats like Romeny hold their profits for more than a year so they only end up paying the capital gains rate of 15%. You think these a-holes would be in the game if they were paying 35% plus an additional 15% in addition to the prospect of failed investments? If it don't make a dolla' it don't make sense but neither is having Romney only pay 15% while the rest of us are look at paying a much higher rate.
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"The Redskins have always suffered from chronic organizational deformities under Snyder." -Jenkins Last edited by saden1; 02-07-2012 at 05:44 AM. |
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#7 | |
Living Legend
Join Date: Oct 2004
Location: chesapeake, va
Age: 61
Posts: 15,817
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Re: Whats Fair When it Comes to Taxes?
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#8 |
Swearinger
Join Date: Sep 2006
Location: Washington, DC
Posts: 12,626
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Re: Whats Fair When it Comes to Taxes?
This isn't fair:
Review & Outlook: Obama's Dividend Assault - WSJ.com This also isn't right: Chart: Nearly Half of All Americans Don't Pay Income Taxes
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Tardy |
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