Capital Gains taxes

JohnnyYuma · #1 06-08-2004, 04:05 PM

Hi all ,
during the discussion on cap gains taxes , all the libs whine about is how it is a rich persons tax that doesn't affect "normal" folks ....

more Liberal hate monger trash ....

a great example ....

the past 3 yrs have been a killer on dairy farms .... this Spring dad and I decided to get out of the dairy business for the most part .so , here you have a family farm , in debt over their heads .... so , one sells assets to pay debt , correct ??

Watch out ! before he died , Grandpa (whom worked all his life on the farm , up to a month before he died ), gave dad a tractor ....

now , if dad sells that tractor to pay debts ...... capital gains kick in , even though he is in debt ..... just how is it that cap gains don't hurt the poor ?

and me ? well , in '99 , dad sold me cows at a good price to help out get started , now , because of my debt , I need to sell most of my cows .guess what ? their is Uncle Sugar with his hand out .......

and if mom and dad suddenly died , leaving this in debt farmer the land .I might have to sell or borrow heavily to pay inheritance taxes .....

Inheritance and Cap Gains taxes need to be eliminated for ever ........

Taxman · #2 06-08-2004, 08:05 PM

I agree completely about the inheritance tax (although I'd be very surprised if any would be incurred in your example based on the limited information). However, I disagree with you about capital gains tax. Here's why: Let's say that you're in a lower tax bracket, say the 15% bracket for the sake of argument. Would you rather have your gains taxed as ordinary income (15%) or as a long term capital gain (5%)? I'm in the 28% bracket and I've got to tell you, I'll gladly pay 15% rather than 28%!

JohnnyYuma · #3 06-08-2004, 08:58 PM

Capital Gains should not be taxed at all .the govt should encourage investing ......

Taxman · #4 06-09-2004, 12:20 PM

It is. You pay a much lower rate for long term capital gains compared to other forms of income. I can understand that you don't want to pay taxes on that income (who does?), but imagine the abuses that would run rampant! I could easily imagine a situation where a billionaire like George Soros pays no taxes while some working stiff pays through the nose to make up the short fall. It'd make the phantom income schemes of the early 80's look like chicken feed...