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View Diary: FLASH: Mitt knows nothing about business taxation (165 comments)

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  •  I commented on it right away last night (27+ / 0-)

    when I realize $100k profit from selling stock - or a house - that money has never been taxed before. And rightly so, because it never existed before the sale. (Just ask all the people who might have made 100k in early 2008 and instead sold at a 100k loss at the end of the year.)

    Am I right, or am I right? - The Singing Detective

    by Clem Yeobright on Mon Sep 24, 2012 at 11:23:44 AM PDT

    [ Parent ]

    •  You are missing the point (0+ / 0-)

      The point is that your house just as easily (particularly in this market) have lost money of which you would have been able to write off a portion.  Becasue there is risk in the investing, these investors feel (right or wrong) that they should be taxed at a different rate.  The fact of the matter is that they are taxed at a different rate.

      •  Not quite (0+ / 0-)

        This diary is about the fact that Romney asserted - falsely and confusedly - that capital gains are double-taxed.

        Your answer is good but it is the answer to a different question than the one at hand.

        Am I right, or am I right? - The Singing Detective

        by Clem Yeobright on Tue Sep 25, 2012 at 04:01:05 AM PDT

        [ Parent ]

        •  I used to own a corp and own stock (0+ / 0-)

          I'm no business genius but I do know what I am talking about.  Capital gains are double taxed in that many (but not all) paid income taxes when they received the money and then are taxed again on the capital gains themselves, should those gains actually materialize.  Needless to say, they may not materialize and you may lose money.  

          Anyway, that is Romney's rationale here.  I would contend it is false because the money that he is talking about never was taxed as income but rather was taxed as capital gains in the first place due to Bain's possibly illegal shenanigans.  Something that little old me was never able to do.

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