Obama to Propose Capital Gains Tax Increase & Extending the Earned Income Credit

[Mr.Phips]

How is Capital Gains double taxation? I get dividends, but why this too? Because they are a function of future dividends gains? Those are getting taxed for someone else (or the company) as they come in. I think 10% is a perfect rate of taxation for CG.

Because companies are already taxed for their earnings before they are given to shareholders as dividends and they are taxed again.   

And wages aren't taxed twice?  At some point, somebody purchased a good from the company I worked for.  They paid taxes on that salary.  The company that I work for now uses that sales income to pay me, and I get taxed on those wages.  Double taxation.

[Mr.Phips]

I really hope Obama's 2nd term isn't filled with "Look at this cool thing we could've had if you guys hadn't voted Republican"

I hope it is actually.

[Mr.Phips]

How is Capital Gains double taxation? I get dividends, but why this too? Because they are a function of future dividends gains? Those are getting taxed for someone else (or the company) as they come in. I think 10% is a perfect rate of taxation for CG.

Because companies are already taxed for their earnings before they are given to shareholders as dividends and they are taxed again.   

And wages aren't taxed twice?  At some point, somebody purchased a good from the company I worked for.  They paid taxes on that salary.  The company that I work for now uses that sales income to pay me, and I get taxed on those wages.  Double taxation.

Taxes are not paid on revenue (assuming that is what you mean the first time you say salary). If that happened, no one would be able to afford to pay any. The wages and all other costs are deducted. Or am I misinterpreting the first tax?

The person who originally earned the salary to buy the good paid taxes on it.

[Mr.Phips]

How is Capital Gains double taxation? I get dividends, but why this too? Because they are a function of future dividends gains? Those are getting taxed for someone else (or the company) as they come in. I think 10% is a perfect rate of taxation for CG.

Because companies are already taxed for their earnings before they are given to shareholders as dividends and they are taxed again.   

And wages aren't taxed twice?  At some point, somebody purchased a good from the company I worked for.  They paid taxes on that salary.  The company that I work for now uses that sales income to pay me, and I get taxed on those wages.  Double taxation.

Taxes are not paid on revenue (assuming that is what you mean the first time you say salary). If that happened, no one would be able to afford to pay any. The wages and all other costs are deducted. Or am I misinterpreting the first tax?

The person who originally earned the salary to buy the good paid taxes on it.

That's pretty silly. The whole purpose is to pay taxes on transactions. A new transaction occured that grows the economy. Taxes must be paid. There is nothing about taxing a physical dollar twice. It's each individual's income. You should be happy if dollars have higher turnover (so long as it doesn't create inflation). Otoh, A dividend is the owner receiving their share of the transaction. The same person's income is being taxed when it comes in to the corporation and then again as dividends without another economic transaction occurring. That is far from the same thing as what you are proposing - effectively no taxes.

The only aceptable counter argument for double taxation would be that the owners are not responsible for bankruptcy risks as was brought up early in the thread.

And dividends are a different transaction than the corporation receiving income and making a profit.  A corporation does not HAVE to pay dividends to their shareholders.  They can accumulate retained earnings.

The double taxation argument is a bogus one because everyone is taxed multiple times.