kelpdiver 2 #26 November 22, 2011 QuoteCurrently income generated from employment is taxed at a higher rate than income generated from investments, which is taxed as capital gains. This is indeed social engineering, a declaration that investment income is of more value to society (and needs to be encouraged by taxing it at a lower rate)) compared to employment income. Remove the "social engineering" and count income generated from investments the same as other forms of income. Err, you are a bit mistaken here. Tax policy favors long term investments over short term, not investments over employment income. If you are a day trader, you're paying full income rates on your earnings. If you are a stock flipper, buying and selling every 3 months, you're paying full rates. This sort of behavior is considered bad for the market, and bad for individual investors. Long term holding is rewarded with a lower rate. And mind you, the rate paid is still greater than income taxes for most people since investment income doesn't have the lower brackets. Now long term doesn't have to be 12 months, it could just as easily be made 24 or 36 and still serve the same goal. Dividend income also used to be taxed as regular income. It was given lower rates to encourage investment in more stable companies that pay out their excess cash flow, rather than the no income growth stocks of the tech boom of the 90s. It favors the Buffet approach to investing, rather than the leveraged hedge funds we see going belly up. Quote Share this post Link to post Share on other sites
billvon 3,132 #27 November 22, 2011 >In practice, I suspect we'd see a constantly moving battlefield, with >winners today become losers tomorrow. I think you'd end up with one winner, permanently. Let's say for example you zero out taxes on teachers and hammer other professions. Lots of people move into teaching, and clever occupations take advantage of that loophole i.e. "banking educator" "vice president in charge of educational directives" "educational mortgage alliance" etc etc. This new privileged class ends up with more money than others and can thus wield more political influence. They support more cuts for them, more opportunities for them and more taxes on others. Quote Share this post Link to post Share on other sites
popsjumper 2 #28 November 22, 2011 AFFI and TI! Tax free income! I like it!My reality and yours are quite different. I think we're all Bozos on this bus. Falcon5232, SCS8170, SCSA353, POPS9398, DS239 Quote Share this post Link to post Share on other sites
billvon 3,132 #29 November 22, 2011 >AFFI and TI! Falls into the teacher category so would be exempt! Oh, but wait - also falls into the sports and entertainment category, so that would be big taxes. Dang. Quote Share this post Link to post Share on other sites
rehmwa 2 #30 November 23, 2011 Quote>AFFI and TI! Falls into the teacher category so would be exempt! Oh, but wait - also falls into the sports and entertainment category, so that would be big taxes. Dang. Yes, some self stylized god of what's right and wrong will decide if it adds value to society and tax it accordingly. As you note, there won't be any analysis or thought (except for show/PR purposes), it'll be completely subjective based on who's in charge and how many donations they get from the AFFI/TI lobby. Wait, there isn't one? guess skydiving professionals (as one example) are screwed. Fortunately, at least, it's exactly like what's happening today anyway. In other words, another completely screwed up concept based on arbitrary social engineering goals. ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
