Quote:
Originally Posted by Robbie
the money you invest was ALREADY taxed at a normal rate when you first earned it. So the feds are double dipping you.
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The initial investment is not taxed again.
If you earn $10,000 raking leaves, make a lucky investment and sell at $100,000, you are taxed on the $90,000 capital gain.
IMO the capital gains tax should be 0% for the little guy to encourage investment (poor retirees included). While I wouldn't mind 0% across the board, I don't think anyone can cry over it matching the income tax bracket system. Especially considering this is money you don't really work for. You don't contribute anything to society to earn it.