US1 - Eliminate Capital Gains Tax Advantages
Description: Put capital gains into the same pot as other personal income, and tax it all according to one set of progressive marginal tax rates.
"Long-term" capital gains were taxed at 28% until 1998 and lowered down to 15% in 2003. Compare this with all personal income over $83.6k being taxed between 28% and 35%.
Eliminating the capital gains tax preference would raise ~$100 BN per year in revenue.
Argument: The long-term capital gains rate is just 15%, and this is the primary reason why billionaires pay a lower tax rate than their secretaries. Essentially, we have a tax system that favors those who sit back and watch their piles of money grow over those who earn their income through hard work.
Related Idea: Stop allowing hedge fund managers to treat their income as capital gains.
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