To play the devil's advocate a bit, why would that be such a bad thing? I
have always wondered why Cap Gains shouldn't be taxed the same as ordinary income (phased in over 10 yrs or so to avoid shocking the system and timing of sales in hopes of different rates), so why not have them subject to payroll taxes as well? Income is income, why not tax it all the same (except dividends unless they change to distributed pre-tax at the Corp level). Of course, I would also advocate that this come with reduced rates across the board to reflect those changes and make them essentially revenue neutral.
Other than no longer using tax policy to regulate investment behavior (a concept I don't like), and the likelihood of more people holding on to assets until death and not getting taxed on the gains (something that can be addressed with a simpler, better inheritance tax IMO), please help me understand why my admittedly oversimplified thinking is so off base?
|
(
In response to this post by BocaHoo91)
Posted: 02/18/2016 at 4:52PM