Income Tax and the Rich Myth (Liberals Read)

• ZWICK 4 PREZ

  

  Belly35;815584 wrote:Liberals and Democrats can't do math or read charts .......... WTF where you thinking?

  
  Can they do proper grammar?
• gut

  dwccrew;818344 wrote:Correct, but my point was that you aren't taxed "again" on previously taxed money as tk421 incorrectly stated. You are only taxed on gains.

  
  I understand that. What I was getting at is we each get $1k and pay tax, you then buy a tv and i buy a stock. So the capital gain is really a form of consumption tax, but people would be outraged over a 15-20% national sales tax on that tv.
• Manhattan Buckeye

  "but people would be outraged over a 15-20% national sales tax on that tv. "
  
  Not only that, but the tv is a hard asset. Its value is easy to ascertain and you enjoy the useful lifetime of it. An investment is a risk, its value could rise or fall and the only thing you have is your basis. It seems hypocritical IMO to encourage investment on the one hand, and tax the gains on the other.
• dwccrew

  

  gut;818462 wrote:I understand that. What I was getting at is we each get $1k and pay tax, you then buy a tv and i buy a stock. So the capital gain is really a form of consumption tax, but people would be outraged over a 15-20% national sales tax on that tv.

  
  That's fine, but my post wasn't directed towards you. Sorry for the confusion.
• Al Bundy

  gut;818462 wrote:I understand that. What I was getting at is we each get $1k and pay tax, you then buy a tv and i buy a stock. So the capital gain is really a form of consumption tax, but people would be outraged over a 15-20% national sales tax on that tv.

  
  You aren't paying to buy the stock. You are paying on the income you earned from the stock. You are already paying a sales tax on the tv when you buy it. You don't have to pay any taxes when you purchase a stock.
  
  If you buy your tv for $1000 and sell it for $2000, you will have to pay tax on that income in addition to the sales tax that you already paid.