@CougarLisa If you’ll hear me out, the issue isn’t different rates, per se. Those exist for income, too. It’s that wealthy people make much more of their income as capital gains, and so can take advantage of their lower rate. So, rather than 37% (income) a much greater proportion of their income is taxed at 20% (capital gains).

This is why they may be taxed a lower rate overall than middle class folks who make most of their money via income not capital gains.

@Bumbles I don't have an issue with civil discourse from intelligent people, so I will hear you out. I understand what you are saying about income vs investment returns (capital gains). But we shouldn't muddy the waters on the subject of one or the other. They are two separate taxable forms of return. One is for physical work, the other is for the work your money is doing. It's unfair to look at someone who has worked hard and not wasted their money, or worked hard to achieve more and say; the return you make on the income you have already payed taxes on and invested should be taxed at the rate income is taxed because you've done so well at investing. The rates are the rates and that's what we have to works with.

Personally, I do not think anyone should be paying taxes on money they have been wise with and already been taxed on! You make money, you pay a tax. What you do with that money is no one business. If I get no return on it by spending it all, (and pay sales tax in doing so) that's on me! If I can make 10% or 1,000% return on it in a legal manner, that's my luck or wise planning. Why should anyone be punished for success, or achievement? The flip side to this is, of course, no tax breaks for losses; which I think is only fair under this scenario.

I personally have used "dividend harvesting" to offset my returns at tax time. In a perfect world, this too would be on me and not qualify me for a deduction. But the system we have is not simple! It's overly complex in a manner that bleeds money out of everyone! Needless to say, this has the largest impact on those struggling to save and survive. It also provides a whole industry with a purpose and billions of dollars in income... do you pay someone to do your taxes??? That's my point here!

Lower income people pay less tax on income, smaller investors pay less tax on their returns. In both cases, the lowest tier applies no tax at all! In theory, someone who lives a very modest life can have a nice sized nest egg and never pay a penny in tax on it!

Moreover, what you pay on your investment returns is influenced by income. Here, again, lower income people with small investment holdings have an advantage. It is the opposite for lower income people with large investments because it influences the overall tax they pay inspite of the lower income bracket.

@MarineBob

What's the union have to do with funding schools ?????

@pdockal union negotiates their salaries

@MarineBob

Again what does that have to do with underfunded schools ?????

@SumKindaMunster that's their mentality...

@4meAndyou

He's trying to be woke enough to snag the
Democrat nomination for president. 🤫

@Thinkerbell Ooooo. Do you think he will WIN? 🤭🤭🤭

@4meAndyou

I doubt it.

He's part of the "billionaire class," as Bernie would say.

@trollslayer yeah, they claim Biden is theirs, so you're spot on for once!

@CougarLisa do you ever post anything meaningful?

@trollslayer this post was meaningful enough for you to reply too...lmfao... do you ever have a thought that does not reflect your lack of ability to apply logic and reason?