04-15-2016, 03:31 PM
(04-15-2016, 12:08 PM)fredtoast Wrote: The problem I have with our current tax structure is that the top bracket is less than half a million. So we divide all the people making less than $400 thousand into 4 different brackets, but then just have one bracket for everyone making between half a million and $100 million.
I don't disagree, but most of what you are talking about as it relates to the 0.5% or whatever is going to be capital gains or deferred income. So simply raising their marginal income rates isn't going to accomplish much.
Really I think raising or eliminating capital gains treatment to offset lower corporate taxes would solve a lot of issues.
Alternatively, maybe they need a few more brackets for capital gains. But global competition for capital investment is fierce, and we have to be cognizant of becoming competitive there if the taxes on investment gains are too high.
The theory behind lower capital gains rates has always been double (or triple) taxation, but in reality the money invested yielding cap gains increasingly is never subjected to double or triple taxation.
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