“People who make money with money are getting taxed at a far lower rate than people who make money by their own labor,” -- Warren Buffet (in an interview with CNN Money)
It goes to show that having made billions does not mean your intellectual capability is any higher than a logical thinker who ponders issues before sticking his foot in his mouth!
Mr. Buffet and other progressives out there: Once again, if anything, capital gains from equity transactions should not be taxed at all as in most of the developped world. Capital gains taxes on equity gains represent double taxation on capital formation. The reason is that they are taxed at corporate level. A government can choose to tax either the value of an asset or its yield, but it should not tax both. Capital gains are literally the appreciation in the value of an existing asset. Any appreciation reflects merely an increase in the after-tax rate of return on the asset. The taxes implicit in the asset’s after-tax earnings are already fully reflected in the asset’s price or change in price. Any additional tax is strictly double taxation.
Got it? I very much doubt it!