Skip to main content

View Diary: Mitt Rmoney has resigned (in effect) as the Republican candidate. What now? (65 comments)

Comment Preferences

  •  I was just coming back to write a non-snarky (3+ / 0-)

    comment like what you just wrote.  What we have currently is very much like what you describe, except instead of the person inheriting being taxed we tax the estate (currently w/ a $5MM exemption per person).

    And the current system strikes me as eminently reasonable, w/ no reason to change it.  That said, people really, really don't like it.  Even for large estates it strikes a lot of people as deeply unfair.  I think that's weird, but it's the world we live in so you have to account for it.  

    Taxing cap gains as ordinary income is the sort of policy where its wisdom turns on its real world effects.  People can choose not to sell their stock, and if OI rates would create lock ups of stock, then revenue would plunge, people would hold stock they don't really want, etc.  None of those are good things, and IMHO outweigh any warm fuzzy feelings we get from equity in tax rates.  

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site