“…taxing capital gains at the same rates as earned income…”
I agree, but this would have to be enacted on people with a higher than average personal wealth. Otherwise the middle class people that have had their retirement invested in 401k’s that rolled over into a stock portfolio will get hammered.
“…taxing capital gains at the same rates as earned income…”
I agree, but this would have to be enacted on people with a higher than average personal wealth. Otherwise the middle class people that have had their retirement invested in 401k’s that rolled over into a stock portfolio will get hammered.
@Todd. I agree. There should be a progressive structure to any such tax so it only hits people lightly at the lower levels, let's say even under $1 million in a single transaction would be as today's rates, but as you go to higher transactions you go to higher rates. This is the structure of the tax on income and modifying the capital gains tax to match earned income gives us the same opportunity, to set tax brackets. Hell, I even envision capital gains exclusions for incomes below a certain level and according to life circumstances, e.g. retirees taxed at lower rates than hedge fund operators...
“…taxing capital gains at the same rates as earned income…”
I agree, but this would have to be enacted on people with a higher than average personal wealth. Otherwise the middle class people that have had their retirement invested in 401k’s that rolled over into a stock portfolio will get hammered.
@Todd. I agree. There should be a progressive structure to any such tax so it only hits people lightly at the lower levels, let's say even under $1 million in a single transaction would be as today's rates, but as you go to higher transactions you go to higher rates. This is the structure of the tax on income and modifying the capital gains tax to match earned income gives us the same opportunity, to set tax brackets. Hell, I even envision capital gains exclusions for incomes below a certain level and according to life circumstances, e.g. retirees taxed at lower rates than hedge fund operators...
Would this actually apply to stock portfolios in an IRA? Don't these withdrawals come out as regular income?