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View Diary: Senator wants to use gambling laws to regulate Wall Street (211 comments)

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  •  profits, not holdings (7+ / 0-)

    Ignoring the fact that the original hyperbolic suggestion is extreme and unworkable, let's look at some reality.

    If you're selling something at a loss, you're not paying taxes on it.  And losses can be used to offset profits in another transaction.

    My father went through this for the first half of the 1980s, so I recall it very well.  Between losing his 32 year old wife (my mother) to cancer, and a crappy market, we ate a lot of pan-grilled chicken and rice/noodles, not out.

    So, yes, personal experience.

    So getting back to reality in time frames, we used to have a 50% short term capital gains tax.  This prevented 'day trading' and too much speculation as long term capital gains tax (over a year?) was far lower.  It's like 20%/10% now.  Ridiculous that someone can work their ass off and pay a higher tax rate than someone NOT laboring.

    Why is that?  Because Wealth writes the legislation, not Labor.

    Political Compass: -7.13, -5.13

    by thiroy on Mon Nov 30, 2009 at 02:50:13 PM PST

    [ Parent ]

    •  re: labor paying higher taxes than owners (3+ / 0-)
      Recommended by:
      gjohnsit, alizard, phonegery

      didn't Warren Buffett recently mention that his secretary pays a higher effective tax rate than he does?

    •  Only an American would complain (0+ / 0-)

      about chicken and rice as a steady diet.

      Little comments like that keep reminding me how very far our standard of living can fall before anything important is affected.

      Gee, Christmas tree lites are five bucks a string! Guess we'll do without this year.

      Better not use the old ones outdoors, they'll last years long indoors.

    •  You forget... (0+ / 0-)

      ...that someone has ALREADY paid income taxes on the money that is being invested.  So of course they should pay a lower tax rate on the returns.  

      You all need to get away from the idea that investing is inherently evil.  How do you think companies get the money to expand, create jobs, etc?

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