…15% cap gains rate which is not too bad for him; I pay a lot more on my labor gains
For people that feel that the capital gains crowd gets special treatment…
How would you be with waiting 8 years for each paycheck, or being paid now in 2004 dollars ( paid 82 cents for each dollar you earn)?
Part of the long term capital gains reduction is a crude compensation for inflation. In this case it fails miserably because of the ludicrous ratio between profit and investment, but in the more normal case where you might make 40% while inflation came up 25% it achieves a sort of balance between tax and inflation's erosion of capital.
I would be delighted to pay 15+18=33percent instead of the 35% income tax rate. And are capital gains subject to the other 1% tax for FICA? And not all capital gains wait 8 or more years. And if I manage to save a bit of my salary, the government doesn't give me an inflation-protected savings account.
For people that feel that the capital gains crowd gets special treatment…
How would you be with waiting 8 years for each paycheck, or being paid now in 2004 dollars ( paid 82 cents for each dollar you earn)?
Part of the long term capital gains reduction is a crude compensation for inflation. In this case it fails miserably because of the ludicrous ratio between profit and investment, but in the more normal case where you might make 40% while inflation came up 25% it achieves a sort of balance between tax and inflation's erosion of capital.