Do you know the difference between taxes on income and capital gains?
Gracie - Proud Conservative
2012/01/25 03:16:13
I know that President Obama needs stupid people. So, do you know why Warren Buffett's secretary pays a larger percentage than he does? Do you know the difference between taxes on income and taxes on capital gains?
Top Opinion
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Jackie G - Poker Playing Pa... 2012/01/25 03:17:37
Next.... You don't know what you are talking about... Anytime stock options are issued - , any net gain in price from the offer price is treated as INCOME annually! Yet any net loss is not! The jerks!
Example: Company A gives key employees options at $10.00 per share. The current price is $9.75 per share... The key employees hold their options until the unfortunate tax date when uncle sam comes calling... The share price is now $15.00 because those key employees did a hell of a good job! The DIFFERENCE in share value is reported as income that you have not received yet and you must pay the ta even though you have not sold the stock and possess the money! The jerks! The only way to pay the capital gains tax is to purchase those shares (which probably are not fully vested - meaning you haven't worked long enough) and hold them for over 12 months which can lead to disaster - just ask the dot-comers who purchased shares thinking they would hold them 12 months and ...
Next.... You don't know what you are talking about... Anytime stock options are issued - , any net gain in price from the offer price is treated as INCOME annually! Yet any net loss is not! The jerks!
Example: Company A gives key employees options at $10.00 per share. The current price is $9.75 per share... The key employees hold their options until the unfortunate tax date when uncle sam comes calling... The share price is now $15.00 because those key employees did a hell of a good job! The DIFFERENCE in share value is reported as income that you have not received yet and you must pay the ta even though you have not sold the stock and possess the money! The jerks! The only way to pay the capital gains tax is to purchase those shares (which probably are not fully vested - meaning you haven't worked long enough) and hold them for over 12 months which can lead to disaster - just ask the dot-comers who purchased shares thinking they would hold them 12 months and live like a king... They ended up losing their shirts because many of the share prices tanked within 6 months!
So, before you hastily decide you know everything.... you might want to bone up on your tax law!
http://online.wsj.com/article...
I am not trying to defend buffet - I think he has so much money he feels guilty - but I will defend capitalism and economic mobility - it should be easy for the poor to get rich and the rich to become poor... but in social welfare states it gets increasingly hard... and the upper middle class pays the price in fact so much so that it is nonexistent.
Buffet in his divine wisdom with so much guilt and money is destroying the very system that allowed him to achieve!
I think we know the answer.
>she might pay a higher percentage but we don't really even know that do we?
Oh I'm sorry, I thought you made this question and brought up the issue of the discrepancy between Warren's taxes and his secretary's....
Why should those that EARN a living WORKING be punished?
? I never said that earned income is affected by capital gains. I am simply stating that preferential treatment is shown to those that do not truly work for their money (As in they do not put forth the hourly effort to make their money), while those that have the least are left to break their backs and are left with a higher percentage taken out of what they have EARNED.
"Another means of silently lessening the inequality of property is to exempt all from taxation below a certain point, and to tax the higher portions of property in geometrical progression as they rise." --Thomas Jefferson to J. Madison, 1785.
"What more is necessary to make us a happy and a prosperous people? Still one thing more, fellow citizens--a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned." --Thomas Jefferson: 1st Inaugural, 1801.
http://www.zompist.com/richta...
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The FDIC and the S&L bailout obviously most benefit investors and large depositors. A neat example: a smooth operator bought a failing S&L for $350 million, then received $2 billion from the government to help resurrect it.
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Beyond all this, the federal budget is top-heavy with corporate welfare. Counting tax breaks and expenditures, corporations and the rich snuffle up over $400 billion a year-- compare that to the $1400 budget, or the $116 billion spent on programs for the poor.
http://wweek.com/portland/art...
We're still funding the root of the problem, Fannie Mae and Freddie Mac and NO ONE on the left sees any problem with that. Let's get government out of the bailout business and lower taxes is not taking revenue, it doesn't belong to the government first, it belongs to it's rightful owner. Private property is sacred and heavily progressive taxation is a Marxist idea.
And guess what, capital alone does NOT spur economic growth. Taxing your working class (You know 95% of the population) while keeping wages stagnant while cost of living goes up, is what kills economic growth. Because with 95% of your population not increasing spending, demand doesn't increase. When demand doesn't increase, need to produce stagnates. When the need to produce stagnates so does growth.
Lowering taxes IS taking revenue. If you base a budget on the amount of income coming from taxes then you cut them while keeping spending the same or increasing by waging 2 wars, the deficit explodes. And that was spending OUTSIDE the country, so no increase in revenues to the economy, or taxes.
And taxes pay for these little things called ROADS, and Bridges, and Police, and Fire Departments, and military, and Schools, etc etc etc. Everyone wants to enjoy the perks but noone wants to help foot the bill.
Many of the people who live off investments and pay capital gains are people who are no longer working, like retirees. You want to tax them at the same level as someone working on money invested that they've already paid on? Or, do you really just want to tax the rich?
All those services that you speak of are supposed to be paid for on the state and local level. I pay for them with my property and sales taxes. That's the way it was intended until we subverted the Constitution and the federal government turned their enumerated powers into unlimited powers.
Keep on taxing the jobs right out of the country. Now there is the lost revenue if you're looking for it.
The 47% statistic is not all Americans pay no taxes, but single filers who will pay no federal income taxes. According to the Center On Budget and Policy Priorities the real reason why 47%-51% of Americans paid no federal income taxes in 2009 is,
The 51 percent figure is an anomaly that reflects the unique circumstances of 2009, when the recession greatly swelled the number of Americans with low incomes and when temporary tax cuts created by the 2009 Recovery Act — including the “Making Work Pay” tax credit and an exclusion from tax of the first $2,400 in unemployment benefits — were in effect. Together, these developments removed millions of Americans from the federal income tax rolls. Both of these temporary tax measures have since expired.
The combination of the recession and the Obama stimulus cut taxes to low and middle income Americans led to fewer Americans owing federal income tax in 2009
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"The truth is that 86% of Americans pay taxes. In one recession strapped year (2009), less than half of single filer taxpayers paid federal income taxes.
Millions of Americans are not being told the truth that almost 90% of us pay taxes, and that much of the reason why there were fewer people paying federal income taxes in 2009 was that Barack Obama signed the largest tax cut in US history.
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The excuse that the 2009 income taxes are different than any other year is an outright lie. Every year since 1987 and actually before that the percentage that the bottom 50% pays is less and less. It was 6.07% in 1987 and by 2007 it was 2.70%.
http://www.taxfoundation.org/...
I am one of those that will be getting back the money I paid in, based on being in a family of 5, head of household, etc tax credits. But does that mean I paid nothing in taxes this year? NO, that means I paid in taxes (Payroll, Income, State Income, etc), the government spent the money and even gained interest off of what I paid in. And at the end, I get back what I paid in. I have tax liability but I also have various deductions that bring what I owe to minimal or even nothing (haven't done my taxes yet, so I don't know)
The point is, I DID pay income taxes even though I qualify as a 0 income tax payer.
It is the equivalent of giving an interest free loan to the government.
http://money.howstuffworks.co...
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At the end of each pay period, Joe's company takes the withheld money, along with all of withheld tax money from all of its employees, and deposits the money in a Federal Reserve Bank. This is how the government maintains a steady stream of income while also drawing interest on your tax dollars.
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Do tell How Taxes Cost Jobs?
Fri Jul 22, 2011 5:45 PM EDT
By John Franklin Mason
Corporations and Conservative Politicians have been saying forever that "Taxes" cost jobs while also saying "Taxes are Passed on to the Consumers resulting in higher consumer cost." Okay, understand, got that, we all heard it before so what has Passing on Taxes to Consumers have to do with Corporate Profits and Corporate hiring when what you are admitting is taxes is a consumer financial burden and not one of the Corporation.
Tax cuts and incentives have went to Corporations that have had Executives and Managers who received in total hundreds of millions of dollars in Executive Bonuses while their Corporations received tens of million in total for tax cuts and Hundreds of millions in government improvements to the infrastructure environment serving Corporate facilities.