If they bring nothing to the table..someone is overpaying them:yes:
I know investors often take big risks and profit margins are sometimes razor thin -- that's part of the game.
But if the taxes from payroll income and investments were equal, which I think they should be, would investors go out and find a 9-5 job? Move out of the country?
I assume no... because they will continue to do they know and have made them successful... so what then? They might make less on investments, maybe take on projects with less risk?
By the way, an investor's definition of risk is far different from that of a police officer. Just something to think about.
It doesn't matter to me how one makes his money. If venture capitalism is what you consider "work" that's great... but your income and my income should be taxed the same way, at the same rate.
How come there are no tax loopholes for custodians and trash collectors who are elbow deep in sh!t everyday? Because they don't run Washington. But they are no less important to society than anyone else... because I know damn well you're not going to take your own garbage to the dump.
Once Obama cuts the budget then we talk about taxes not until then. Obama time to shutup and get spending under control!
I need to save about 25K a year to have a similar beneifit.
Not complianing and dont want to be political just pointing out that public employee unions have done a thorough job ensuring benefits for its rank and file.
The problem with all of these arguments is that the baseline that is presented is completely false. When you take entitlement taxes like medicare and social security out of the mix, which is appropriate since those are not true taxes but rather forced savings, the average family making 100K per year in income pays an effective tax rate of around 12%. Even families making around 200K pay effective tax rates right around 15-18%. The is particularly tru for those living in States which have State income tax.This idea that the cap gains and dividend rates are dramatically less then what the average taxpayer pays is simply not true when actual numbers are used. Kicking incetsment income up to 35% then adding state and local taxes in bringing it up to 40+ % would absolutely stifle investment.
Look i'm not trying to tell you investors are saints, looking to better the country, they're not. Capitalism works because it allows people acting selfishly, in their own interest to benefit society as a whole. Any time you penalize something you reduce it. This is a basic economic fact.
Remember that dividends which are currently taxed at 15%, have already been taxed at the corporate level at a rate of perhaps 35%. That means a double taxation on the invested capital. Excessive.
A change in capital gains rates (50% exclusion as it once once) is not terrible. Aggressive changes and increased run the risk oof stunning the economy. Better to move gradually. Evolution rather than revolution.
Some changes to deductions and exclusions should be considered.
An increase in age eligibilty for SS and Medicare is a must. Disability abuse must be curbed as well as Medicaid abuse.
$120/hour isn't what it used to be. The fuel bill for my boat is a disgrace.
Actually 250k is not a lot. For a guy like cpa for example - he has 2 kids in decent colleges. Ain't cheap. Lots of us already have a hefty tax bill.
Do those who pay no taxes have ANY responsibility? Here's thought. Pay no taxes, get community service. Same with get food stamps or unemployment, clean the park etc.
You are not the Corporation. You are two seperate legal entities.
Their profit is not your profit. Their income is not your income.
Your profit only occurs when they issue you a dividend.
It's not a double tax, it's a tax on the Business, and then a tax on you, two different entities, two different taxes.
And it's exactly the same as payroll, where the business is taxed on its profit, then the employee is taxed when they are paid.
At the end of the day, a yearly income of a quarter million dollars is a significant amount of money no matter how you spin it. If it is not enough for you and your family, then it's due to the personal choices you have made in life.
The overwhelming majority of Americans make significantly less income, and many of them are still able to live very comfortably. It's all about priorities and choices.
Of course the profit is my profit. As a stockholder I OWN a percentage of the company. It is MINE. Their income is partially MINE.
You get confused because of the MAGNITUDE of some companies. Obviously my ownership % of Exxon is minimal but I still own a part - MY PROFIT.
If my company was a microcap it would be "closer to home" but no different.
No sir, it's not yours. You have (via stock ownership) a claim on assets ONLY if the Corporation ends, and less their outstanding liabillities. You cannot walk your stock certificate up to IBM and ask them for $100 woth of stuff in exchange for the stock on your demand.
The Corporation, and yourself, are two absolutely disstinct legal entities. You are not, in fact, an "owner" in the way your're claiming simply because you won stock, and the profit is not yours (the Corporation is under no obligation to issue a dividend).
If the system worked as you claim, where their profits are yopur profits, the reverse would also be true, their liabillities would be your liabillities, and when a company went out of business, you (as the supposed owner) would have to pony up your own personal assets to make good any liabillities outstanding at the time of termination......which clearly does not occur.
And income the business makes is not yours in any legal form until such time as they choose to issue a dividend. Then and only then does the money become income for you.
You're not being taxed twice anymore than my paycheck is taxed twice. I am not my employer, and you are not IBM just because you won a few shares.
My point: yes, it is ... and the reason you don't think so is due to your personal choices and lifestyle.