Re:A majority of Americans support raising the top tax rate ...
by dragonwriter on Wednesday January 16, 2019 @04:08PM
(#18925274)
> The truly wealthy people do not gain their wealth through income.
Yes, they do. Gaining wealth is income. (It may be income that is subject to favorable tax treatment, but it's still income.)
> They get it through capital gains ( stocks, homes, asset value increases ). Capital gains ( long term ) are taxed at 20%.
You can add a new top bracket and tax long-term capital gains as normal income at the same time. Though if you do the latter, you should also:
(1) Allow recognizing expected income for tax purposes in advance of realizing them, and also allow deferring large windfalls over a period of years, and
(2) Inflation-correct asset basis values and balances of anticipated income on which tax has been prepaid.
Yes, they do. Gaining wealth is income. (It may be income that is subject to favorable tax treatment, but it's still income.)
> They get it through capital gains ( stocks, homes, asset value increases ). Capital gains ( long term ) are taxed at 20%.
You can add a new top bracket and tax long-term capital gains as normal income at the same time. Though if you do the latter, you should also:
(1) Allow recognizing expected income for tax purposes in advance of realizing them, and also allow deferring large windfalls over a period of years, and
(2) Inflation-correct asset basis values and balances of anticipated income on which tax has been prepaid.