Saturday, September 17, 2011

Capital Gains Tax Rates Fuel American Inequality

When Warren Buffet pays less in taxes than anyone in his office, then the US needs to raise taxes on the rich.

Mayhaps this explains how rich idiots can afford dog spas.


Dogs don't need aromatherapy.


[For the very richest Americans, low tax rates on capital gains are better than any Christmas gift. As a result of a pair of rate cuts, first under President Bill Clinton and then under Bush, most of the richest Americans pay lower overall tax rates than middle-class Americans do. And this is one reason the gap between the wealthy and the rest of the country is widening dramatically.

The rates on capital gains — which include profits from the sale of stocks, bonds and real estate — should be a key point in negotiations over how to shrink the budget deficit, some lawmakers say.

“This is something that should be on the table,” said Rep. Chris Van Hollen (D-Md.), one of 12 members on the congressional “supercommittee” tasked with reducing the deficit. “There’s no strong economic rationale for the huge gap that exists now between the rate for wages and the rate for capital gains.”] emphasis added

No comments: