The argument against raising the capital gains tax (or for eliminating it altogether) is that the profit has already been taxed at the corporate level. This position is understandable. Personally, I feel eliminating the corporate tax would solve this dilemma rather quickly. The corporate income tax gives credence to the idea that a corporation is a "person," and taxing the shareholders directly makes a ton more sense anyway. Eliminate the corporate tax, raise the capital gains tax to 20%, and replace the income tax code with a simple 20% flat tax with an exemption of, say, $35,000. Not only would such a reform be very popular, it would also likely give the economy a much needed shot in the arm...
There should also probably be a 10% surtax on incomes over a million, at least until we can get the deficit/debt situation under control.
Last edited by Rationalist; 01-28-2012 at 07:44 PM.
"We know that no one ever seizes power with the intention of relinquishing it. Power is not a means, it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power." -O'Brien, Nineteen Eighty-Four
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