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View Diary: Romney Parks Millions in Offshore Tax Havens UPDATE 2 (309 comments)

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  •  Who said otherwise? (1+ / 0-)
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    VClib

    That is a problem, you get that tax break no matter where or how you invest. I am saying, rather than taxing the INCOME from investing differently, why not a tax break for actually INVESTING in America? I ask because it sounded earlier as if you were making the argument that this tax structure is good for America as a whole. Well, if you get the tax break even when you invest in foreign companies, then your earlier argument kind of flies out the window, doesn't it?

    Do we, as a nation, tax INCOME from investing at a lower rate than income from working in order to benefit society as a whole? If that is our rationale for doing so, then we must keep those investments in America. If our rationale is actually "We just like to make rich people richer, and damn the cost to the rest of us" then we are doing a fine job.

    •  I missed your point (0+ / 0-)

      and agree that favorable capital gains treatment should only be for US investments.

      "let's talk about that"

      by VClib on Thu Jan 19, 2012 at 02:24:59 PM PST

      [ Parent ]

      •  My main point is this: (0+ / 0-)

        If we want to reward investment, then give a tax break for investing. Giving a tax break on the INCOME gained from investing is not the same thing. Income is income, it is what you do with it that matters, not how you got it. We are rewarding people who got their income in a particular way, but 99% of the people don't get to choose whether their income comes from investing or work. You can't incentivize those people into investing by giving a tax break to people who have already invested and made a return. This just seems like basic common sense to me, yet people continue to confuse investing with income.

        •  Seth - well I don't agree with that statement (0+ / 0-)

          Capital gains treatment for long term gains is a powerful incentive for people to invest. I see it every day. The Obama administration were advocates for a two year period, which just ended this last December, for a very special capital gains tax rate of zero. For people who invested in startups between January 1, 2010 and Dec 31, 2011, and kept their stock for five years, there will be no capital gains tax on any gains - ZERO. These gains will not even be in the calculation for AltMin. I saw how this tax feature very substantially motivated private investors to act before the window closed last Dec.

          "let's talk about that"

          by VClib on Thu Jan 19, 2012 at 03:54:29 PM PST

          [ Parent ]

          •  You could have a different powerful incentive (1+ / 0-)
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            VClib

            Rather than rewarding people after the fact for having the good luck to turn a profit on their investments, which is just a form of income, you give a rebate on ANY form of income that gets invested. Right now, you only get the benefit when you reinvest investment income. I am asking, why? Why not give a tax rebate on any sort of income that gets invested, if promoting investment is the goal?

            In most other areas where the government wants to influence economic activity, it gives a tax rebate for the spending side of things. With investment, you get a rebate on the income side of things. Investment INCOME is treated differently that other income, when what we really should be doing is treating investment EXPENDITURE differently than other expenditures.

            •  Seth - I think you have a very valid point (0+ / 0-)

              As I mentioned we did this prior to 1986, although you also qualified for capital gains if the investment worked out as well.

              "let's talk about that"

              by VClib on Fri Jan 20, 2012 at 08:43:35 AM PST

              [ Parent ]

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