Even though income taxes are much higher on the "rich" (those making over $400k a year in income), a lot of people argue that taxes are the lowest on the mega-ultra-rich because a lot of mega-ultra-rich people make their money through capital gains, not income, and the capital gains tax rate is only at 15%. For example, Mitt Romney only paid 15% of his yearly earnings in taxes because most of that money came in the form of capital gains, not income. Another good example is Warren Buffett.
What do you guys think we should do about the capital gains tax?
I think it should stay at 15%.
You guys have to remember that the top 1% pay 35% of the taxes, and most rich people and ultra-rich people (and a significant portion of mega-ultra-rich people) get their money through income, not capital gains. I do believe that raising any tax will hurt our economy and I'm strongly against any increase in taxes. I would only support raising the capital gains tax if we lowered income taxes on the rich first, and even in this scenario, I would only support an increase in capital gains tax for capital gains that are over $1MM.
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