Do you believe capital gains taxes should be at the same rate as income taxes, higher, or lower?

Capital gains is taxes on investment income. Short term is usually treated like normal income. Long term, meaning you've held something like a stock for over a year before selling it is taxed at 15%. This is how many rich people pay less percentage of taxes than middle income people. Because most of their income comes not from labor but from investments.

Should an investment, letting your money do the work, be taxed lower or higher than the income one gets from actually working?

I think income should be lower, and capital gains higher.

The caveat is that traditional 401ks could be negatively impacted without other changes.

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GerOttman · 61-69, M

It's not just wealthy people who invest and benefit from the capital gains rate. Using the lower rate to encourage investment is a sound and generally beneficial policy. Lower taxes across the board would further contribute to increased savings and investment. No one should be penalized for working hard and saving smart.

firefall · 61-69, M

@GerOttman lowering the rate encourages investment allegedly, but it turns out not to be the case in the real world. Lowering taxes generally was dubbed trickle down theory in the '80s, and has consistently and repeatedly failed to deliver growth.

Plus, the biggest problem with capital markets now is that too much money is chasing too few good investment opportunities, leading to massive rises in fraud, and just plain dumb investments.

GerOttman · 61-69, M

@firefall Taxes were not reduced in the '80s, they were just moved around. it was just a shell game. federal rate went down and state and other taxes went up. color me skeptical as to your second statement.

ViciDraco · 36-40, M

It's mostly wealthy people that do. @GerOttman most Americans have no retirement, let alone enough extra to invest with. The problem is in the needs economy. When the lowest earners make more, costs for shelter, medicine, and education all increase too. Not because these things cost more but because people don't have the option to opt out of buying them.

GerOttman · 61-69, M

@ViciDraco tough to save or invest when the government treats people like tax slaves. how do suppose wealthy people get wealthy? it's not by working a 9 to 5 and spending the weekly earnings on rent, beer, and cigs. most Americans are too dull witted to take care of themselves and think somehow they are owed a comfortable retirement they haven't actually planned for.

ViciDraco · 36-40, M

@GerOttman our taxes are rather low compared to the rest of the developed world.

GerOttman · 61-69, M

@ViciDraco not low enough...