Re:Sam Altman and Andrew Yang talk UBI
by dragonwriter on Tuesday January 07, 2020 @03:26AM
(#21978099)
> No, they're not taxed as income. They're taxed as capital gains.
Capital gains are a subset of income, taxed via income tax at, in some cases (mostly, “long-term” gains) preferential rates.
> There's a set of taxes called "income taxes,"
Capital gains are part of those taxes.
> and the rules are the same for anything classified as income
No, they aren't. There are all kinds of special cases with income. Capital gains are one: they are income, included in AGI (adjusted gross income) which effects eligibility for various tax credits and deductions, but in certain, but not all, cases taxed at lower rate than ordinary income, as low as zero percent for the portion of long-term gains within the tax bracket qualified for 12% rate on ordinary income.
Capital gains are a subset of income, taxed via income tax at, in some cases (mostly, “long-term” gains) preferential rates.
> There's a set of taxes called "income taxes,"
Capital gains are part of those taxes.
> and the rules are the same for anything classified as income
No, they aren't. There are all kinds of special cases with income. Capital gains are one: they are income, included in AGI (adjusted gross income) which effects eligibility for various tax credits and deductions, but in certain, but not all, cases taxed at lower rate than ordinary income, as low as zero percent for the portion of long-term gains within the tax bracket qualified for 12% rate on ordinary income.