Little Factoids and why America is in Trouble

[Expat1 971]

I definitely agree on the second home, and in general, I am not in favor of loopholes and deductions, I think it only complicates matters and is why almost no one can do their own taxes without any help.

How high do you think the capital gains tax should be? I disagree it is not hard work. Maybe to some, like if all you do is invest it in an ETF and forget about it for 30 years. But those of us that actually have to analyze stocks to invest in, or traders like me - trust me it is a very hard and demanding job, maybe not physically but sure is mentally and with the amount of hours you have to put into it. To be honest it is probably one of the most demanding jobs out there, and let me assure you I am not a spoiled kid from a rich home saying that - I have worked hard jobs in my life including as a waiter - as well as still working with my wife in her shop. My wife herself has had a very rough life including raising 3 kids on her own working 3 different jobs and still feeding them with only $500 a month. All that led to her suffering to this day from several autoimmune diseases(plus the fact she was abused as a child and as an adult in a past relationship) as well as several spinal issues, which is the reason we decided to open our own shop as she couldn't be told anymore by anyone else when to sit down(like I said before we have our own flower shop and at times I will help with deliveries if I am not busy with the market or if we're extremely busy and I will do some of the deliveries which include driving for hours sometimes in blizzard like conditions). But ask her now that she's seen what I do and even she will tell you it is very, very hard. But I don't expect most people to get that - people just think you sit at home in your AC and click your mouse and become rich in a day. It took me 10 years to get us to the point we are at today, with many struggles along the way, for us, together and separate, during and before. But we didn't give up like some(not all) do and then just expect a handout.

Personally I think capital gains should be taxed like any other income - based on how much you made that year and not just a flat percentage. If I only made 10,000 this year in the market I shouldn't pay the same tax as someone who made 100,000.

I was and always will be against bailouts.

I only believe capital gains (including my own btw and on the short term they are anyway) should be treated as any other income and I believe that the loopholes should be closed and nailed shut. There is a whole list of them LOL, but many of them like deducting mortgage interest on multiple homes favor the wealthy and I don't view a policy of pay your taxes first then buy your toys later as punishment.

[OriZ 3,157]

I'm a little bit on the fence on whether it should be necessarily the second or the third, but definitely third and up I believe should be viewed as investments. No one really needs more than 1, maybe two houses.

I believe if capital gains tax was taxed like any other income with the same brackets it would actually lower it from what it is today to most people. The reason I say this is I don't think there should be a difference between short term gains and long term gains. They need to simplify things.

[Expat1 971]

I'm a little bit on the fence on whether it should be necessarily the second or the third, but definitely third and up I believe should be viewed as investments. No one really needs more than 1, maybe two houses.

I believe if capital gains tax was taxed like any other income with the same brackets it would actually lower it from what it is today to most people. The reason I say this is I don't think there should be a difference between short term gains and long term gains. They need to simplify things.

You are right about the numbers of people who would be favored (overall tax bill lowered) however it appears that the magical .3% (income over a mil) get 70% of the benefits of the capital gains differences.

[OriZ 3,157]

You are right about the numbers of people who would be favored (overall tax bill lowered) however it appears that the magical .3% (income over a mil) get 70% of the benefits of the capital gains differences.

Easiest thing to do if you ask me would just be to count it as any income. for instance if you have a realized gain of $30,000 this year plus you made 50,000 in whatever job it is you have, then your total gross should just be considered 80,000 and pay according to that bracket. Same if you have a realized loss of 10,000 then your income is 40,000. Simplify the tax code.