In the United States, individuals and corporations pay income tax on the net total of all their capital gains. A capital gains tax (CGT) is a tax on capital gains. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. How does the federal government tax capital gains income? Is it 30%? Or is it more higher than that? How much do you know about capital gain tax and its tax rate?
It's lower than the tax rate on most other forms of income since Bush made cuts to their rates in 2003 and is largely responsible for the low tax rates that some of the wealthy pay.
However, it's probably the single smartest thing Bush did during his otherwise mediocre-to-terrible presidency. The 2003 cuts not only created millions of jobs; they actually INCREASED total federal revenue. By hundreds of billions per year, even. One site that I looked at claimed that the extra revenue from the tax cuts could have paid for the entire Iraq and Afghanistan wars if it hadn't been blown on discretionary spending instead.
The simple fact is, based on proven past results, raising the capital gains tax would be bad for both the people AND the federal government's bottom line. But a lot of people like to ignore that because it reflects poorly on their other agendas.
And it's not only the wealthy who have capital gains. People who sell their houses, furniture, or cars may have taxable capital gains, depending on a number of specifics.
by GA Anderson11 months ago
You work hard to build a fortune that you can pass on to your kids, or otherwise distribute however you desire on your passing. It is your money. Shouldn't you be able to do whatever you want with it, within our legal...
by Mikel G Roberts5 years ago
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by Petra Vlah4 years ago
At the very specific question “what would you cut in terms of deductions like home mortgages, child allocation and charity contribution in order to reform the tax system and reduce the deficit”,...
by lady_love1585 years ago
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by Nick Lucas5 years ago
I don’t understand this concept that Obama and many liberals keep clinging to…..So allow me to make it simple. If everyone is taxed at say 10% people who make more do pay more as 10% of a greater amount is...
by Tony Lawrence4 years ago
Is nobody going to call Peter Schiff on his "I pay 50% tax" crap?Recently, Peter Schiff marched into OWS and confronted demonstrators, claiming that he pays 50% of his income to taxes. Unfortunately, the...
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