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Originally Posted by jamesqf
Not entirely true. A wealthy person who gets most of their income as earned income pays a much higher rate than the average taxpayer: 35% on everything over $379,150 for a single person. On the other hand, if you have an income less than about $35K (again, for a single person) you pay zero tax on capital gains - and there are probably a lot of retired folks in this position.
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The answer to that is simple: treat capital gains as any other kind of income. If that retired person is making zero "income", but bringing in $100,000 in capital gains, they pay zero taxes right now. Oh, and by the way, that single person making $379,150 doesn't pay 35%. That's only on income OVER $379,150, and AFTER all of his deductions and credits. (And if he's earning $379,150, you can bet he has some high-dollar accountant that helps him hide half of that.) Oh, and don't forget that he only pays SS taxes on the first $106,800 and SDI on the first $93,316.
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In either case, whether the income is earned or CG, the typical rich person will pay a far higher amount of tax...
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and will take home a far higher amount of money, don't forget...
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...but don't get anything more (and probably less) from government "services" than anyone else. So where is the fairness in expecting them to pay, not just more because they have more income, but a higher rate?
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So you're saying that they use the public roads, fire service, police protection, military and public waterways less than a poor person? That 6,000 pound Land Cruiser (more wear and tear on roads, more oil consumption), yacht and instant police response that comes with living in an 'affluent' neighborhood disagree. And I'm certainly sure that they're going to be using medicare and social security just as much as the poor.
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Seems to me that's just a majority wanting to freeload off the more successful minority.
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You mean that top 1% who control more than 50% of all wealth? If you don't see something wrong with that picture, you're blind.
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And of course there is a bit of self interest here: once that majority sucks the rich dry, who will they turn to next?
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The rich like Warren Buffett, who paid a 17.4% effective tax rate last year? And the 400 wealthiest persons in America who paid, on average, less than 20% in taxes last year? And who pay little to no SS, Medicare and SDI taxes, but still are free to collect when they retire? Those poor rich that are getting sucked dry?
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The not rich but above average people like me, that's who.
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Ah, now we're at the crux of the argument. "GIVE ME THAT, IT'S MINE!"