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 Anderson 2 years 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 boundaries of course?What business does the government have taxing your estate...
by Mikel G Roberts 6 years ago
I believe Capital Gains should be the most heavily taxed form of income there is. As much as 90% should go to support the social system that makes the capital gains possible.Being given money simply because one has money, should be treated as the bullying that it is.I believe the formation of this...
by lady_love158 7 years ago
Obama and Warren Buffet thinks the tax system isn't fair. Buffet a billionaire says he pays a lower tax rate than his secretary, and thinks the rich should pay more to make the system fair. So, wouldn't lowering the rate of poor people have the same effect, and why isn't Obama pushing for a lower...
by Alex J. Reissig 6 years ago
Would you support a flat 15% income tax?Would you support a flat 15% income tax in this country? Other than a personal deduction (possibly in the neighborhood of 25k per individual/50k per couple) there would be no deductions.
by Petra Vlah 5 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”, Romney’s response was something like that: “ I will help the middle class by giving them a...
by Pankaj Pathak 7 years ago
Capital Gains Tax India on Sale of Residential PropertyCan somebody please help me understand the income tax treatment of capital gains tax on sale proceeds of residential property?
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