Comments on: Why capital gains should be taxed as income http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Malcolm Beasmore http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-55692 Mon, 20 Oct 2014 07:16:22 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-55692 Color Color preference largely affect your choice of a wallet. Hence, you’re going to get full usage of all its ports and operations without the need to get rid of the case out of your phone. Regardless of the brilliance with the artwork and constructive public reception, the exhibit encountered criticism in Ny, in which its presence in Central Park was considered a cynical use of public room for a business interest. Adidas Skateboarding are the shoes that are specifically made for skateboarding. IPads are for consuming and interacting with a wide amount of content. IRG focuses on event driven and special situations including Mergers and Acquisitions, Recapitalizations and Restructurings, Management Buyouts, Late Stage Private Equity Capital Raisings, and Asia Market Entry Strategies. A humidor adds humidity to the cigars’ environment. The ultimate fashion trend image, Paris Hilton’s design is mostly flawless, although there have actually been several occasions where she has actually been apprehended by the style police for committing fashion trend artificial pas of the greatest order.

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By: traduceri daneza romana http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-53657 Mon, 29 Sep 2014 14:02:17 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-53657 Related to Merck Individual Care The modern Merck is a international clinical alpha dog fitting in with profit the environment be. Merck Individual Care is a part for Merck Company., Inc. Each day, large numbers trust in a number of our own industry leading makes which help eliminate or perhaps treat many common types of conditions.

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By: ponder http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47300 Mon, 10 Jun 2013 15:10:28 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47300 Debating the merits of aligning the Capital Gain tax with the income tax rates misses the point. What is really needed is comprehensive tax reform where capital gains and income taxes are part of the debate. Only then can we create a tax regimen that will address our country’s needs and be fair and balanced.

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By: TFF http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47291 Sat, 08 Jun 2013 19:36:36 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47291 @Kaleberg, the biggest problem with taxing property is the question of how to value it. While conventional financial instruments are easily valued, there are a ton of unconventional financial investments that are not. Real estate is not easily appraised. Partnerships are even trickier to price.

And what price would you put on my business? I sell my personal services — my reputation and client list definitely have value, at least as long as I care to run the business, but I’m not sure how you would begin to calculate it. Would you only tax tangible assets?

Almost anything is better than our present system, which purports to tax income, but is so ridiculously riddled with loopholes and exemptions, and definitions pertaining to the recognition of income, that somebody like Mitt Romney can drive a $10M bus through them tax free.

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By: Kaleberg http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47288 Sat, 08 Jun 2013 03:58:01 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47288 Consumption taxes are a terrible idea. We want to encourage consumption rather than having our ability to purchase goods and services tied up in financial instruments. Since 1980, there has been no economic growth in the US. All the potential has spent on symbolic goods rather than providing the things that people can use.

Of course, the correct approach is a wealth tax on all private property, perhaps with some modest deduction. After all, private property is a government service, so the more of it one uses, the more one should pay. If people don’t like paying the government, they can just give up all government money, shares of government chartered collectives and government administered real estate. No one say says you have to own anything.

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By: TFF17 http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47280 Fri, 07 Jun 2013 18:19:43 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47280 Tax everything, give rebate sufficient to cover basic needs. Saves on the argument over specifics.

In theory, taxing new construction drives up prices on existing homes (or drives down the net price of new homes), so from the point of view of the consumer it doesn’t make a difference whether you buy a new home or an existing home. Hard to game that.

In practice, the housing market is not monolithic. A (large) tax on construction would potentially depress new construction, with distortionary effects. This is why I would prefer to tax property consumption rather than property construction — but then you get into the knotty question of how to tax everything BUT new construction. And open Pandora’s Box of exceptions to the tax code.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47274 Fri, 07 Jun 2013 14:52:47 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47274 Duh, my mistake. But there are other ramifications – wealthy people who pay cash for existing homes (multiple ones, at that) would pay no consumption tax on their purchases. I think there will be many ways to game this system.

I’m not a fan of the current tax system, so I won’t defend it.

Do we tax food?

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By: TFF17 http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47273 Fri, 07 Jun 2013 12:53:56 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47273 “So if I buy a home with cash, I don’t have to pay any consumption tax on it, but those who need a mortgage do?”

When I suggested that financing be exempt, I meant that financing would be exempt. As in no tax. I’m not sure how that is ambiguous. What is the question?

If you tax new construction (the simplest approach, since you are already taxing all goods and services in the economy), then then there is no differentiation between buying cash, buying on a mortgage, and renting. The downside of this is that existing housing stock doesn’t get taxed (though renovations would be). This isn’t different from any other capital good, but housing is obviously the most significant long-term capital good in the consumer economy.

If you tax property values, either at the federal, state, or local level, then there is again no differentiation between buying cash, buying on a mortgage, and renting (presuming that landlords pass their costs through to renters). Obviously the property tax would be set at a different rate than the consumption tax, since only a fraction of the value of the property is “consumed” each year. That might lead to double-taxation of new construction, but I’m not going to fret too much over that…

In contrast, the current income tax system treats cash purchases, mortgaged purchases, and rentals very differently. If you buy cash, then the proceeds of that wealth (in this case a steady supply of housing) are tax free. This is a huge tax break for the wealthy who would otherwise owe taxes on that income. If you mortgage your purchase, then the mortgage interest is tax deductible. This is a huge tax break for the upper middle class, who deduct their mortgage payments with one hand while they shelter their income (for decades!) in tax-deferred accounts with the other hand. Renters get no tax deduction on their housing cost. Assuming that landlords pass costs through to renters, they report financing costs as both as positive (rent received) and deduction (interest paid) on Schedule E. Tax neutral for landlords. But unlike owners, the renters do not get a Schedule A deduction on their housing. (This is a big part of why anybody who CAN afford to buy SHOULD afford to buy. As Felix notes, that might not be the best policy.)

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By: elpea123 http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47272 Fri, 07 Jun 2013 02:04:15 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47272 Well, the gains rate went up higher than it was. What happened? Make it higher….extrapolate from there.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2013/06/05/why-capital-gains-should-be-taxed-as-income/comment-page-1/#comment-47271 Thu, 06 Jun 2013 22:31:13 +0000 http://blogs.reuters.com/felix-salmon/?p=21985#comment-47271 dtc, that is true, but I should have expanded more on that comment. I was thinking about the EU as a whole, where some countries have higher incomes than others, and they all share a common currency, just like the different states in the U.S.. However, the poorer members of the EU cannot improve their standard of living like the poorer states in the U.S., because they have separate governments, and they can’t print money. German citizens don’t want their tax dollars to help out people in Greece, but a disproportionate share of my tax dollars are spent by the federal government in southern states. This (partially) offsets the income disparities between states.

Deficit spending is a systemic response, by a government, to insufficient individual incomes. These nations can’t do that, so instead they turn to austerity, which shrinks the economy and is exacerbated by a reliance on the VAT (less spending -> less taxes collected -> even less spending). I probably should have said Europe has a weaker economy than the U.S., instead of an income inequality problem, but I think the two are inseparable. When there is not enough money to be spent by individuals, the economy shrinks.

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