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View Diary: Washington Post Notices Class Divide (296 comments)

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  •  I can't believe we even tax capital gains. (18+ / 0-)

    That guy worked really hard to make that stock grow so much. Well, he didn't have to stand on his feet for eight hours a day. And he got to take lunches longer than a half-hour. But I mean... he... think of all the flights he had to take, and all the fantastic dinners he has to eat with all those important people. It is... really rough!

    •  Not entirely fair (0+ / 0-)

      Any money invested in the market is "at risk" meaning it could all go away at a moments notice.  If you tax the hell out of all market profits, it makes investing in the market not worth the risk, and that would be bad for our economy.

      I'm not saying capital gains shouldn't be taxed, but acting like having stock is some magic way to print money is a fairy tale. It is if you happen to create a fantastic business.  But for a ton of people, market gains are just us trying to get our savings account to keep up with inflation.  Not everyone in the market is super-rich.

      •  income is income. (2+ / 0-)
        Recommended by:
        bablhous, neroden

        earning it from owning things doesn't mean you should pay less taxes than if you earned it for doing things.

        and all this "not worth the risk" silliness has no connection to reality. people don't divest when it's taxed too much. they divest when tax rates are low enough that the incentive to reinvest that money dissipates.

      •  No. Capital losses are deductible. (1+ / 0-)
        Recommended by:
        2020adam

        We tax market winnings, and we allow deductions for market losses.

        You could tax just like ordinary income -- and it wouldn't affect the economy much at all.  If you set the tax rates a lot LOWER than the rates on earned income, it gives an incentive to gamble rather than work; if you set it high, it gives an incentive to work rather than gamble.

        I say this as a stock market gambler.  :-)

        If you want unfair treatment, look at the treatment of casino gambling; winnings are taxable, but losses are NOT deductible.

        Read pp. 1-7 of Krugman's _The Great Unraveling_ (available from Google Books). NOW.

        by neroden on Sun Jun 19, 2011 at 06:31:26 PM PDT

        [ Parent ]

      •  stock options? Stock grants? (1+ / 0-)
        Recommended by:
        2020adam

        it IS a magical way to make money if you get stock options that they can choose to exercise or not.

        Stock options are an evil born of evil and end up doing evil.

        The greed says "let's not pay this person money - let's pay them with stock options", so it has grown to this - where stock options form a huge part of any big-wig salary (sure, some smaller startups offer stock options but in amounts dwarfed by what CxO and best-friends get.

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