I think your point is easily solved with a capital gains deduction or marginal rate, where the first X of annual (or averaged annual) gains are exempted. So a person selling $50,000 (or whatever) or more would see a higher rate, thus people withdrawing from their retirement account wouldn't be hit by an increase.
The main reason I would increase the capital gains rate is the very richest, like Warren Buffet (as he himself pointed out), pay a lower rate than much less wealthy/lower income people due to the favorable capital gains rate. This sort of inversion shouldn't exist in a progressive tax system. Personally I view one of the several valid goals of a tax system to be keeping income/wealth inequality within reasonable limits and I think this would help with that.
Re:End Stock Buybacks, Save the Economy?
by OscarCunningham on Sunday September 02, 2018 @03:10AM
(#17895995)
What about dropping corporation tax to 0% and then treating capital gains as income?
I'd prefer to target whichever factor correlates best with how much the person can afford to pay. A capital gains tax is bad by this analysis, because it also hits the retirement accounts of poorer folk. An income tax increase for high incomes would only affect the rich.