Capital Gains Taxes - Should they be abolished?

[David Floyd]

Germany has other problems, such as their too-high income taxes, too many social services/programs/entitlements, no gun ownership, etc.

[chequita guevara]

Originally posted by Adam Smith
Chegitz:

Your rejoinder is far too simplistic. The issue is a matter of degree....not NO investment, but less than there otherwise would be.

Dang, you caught me.

[pchang]

Monaco

In that case, invest your money in the US market through a blind account in some place nice like Monaco. Then, you will pay no capital gains taxes. If you only spend your capital gains outside the US, then it is even legal (various authorities disagree over this, but leading tax lawyers have so far been able to shield their clients from paying US taxes in such cases). Anyway, withdrawing cash for use in the US with a Monaco Bank ATM card would easily fall under the radar of the IRS.

[Dauphin]

Originally posted by 9 ECAC Titles
> In the 1970s when income tax was 97% on top earners (~£1,500,000 per annum IIRC) a lot of people just left the country.

In the US, the top bracket tax rate was at its highest in the 1940's through the 1960's, the golden age of the US economy.

Also worthy of note: during the same period, corporate taxes were also at their highest.

Progressive taxation helps the middle class, especially the lower middle, the most. A strong middle class equals a strong economy. Or perhaps you're going to sell all your goods and services to the 1% who would benefit from a flat tax?

Perhaps it was because it was a golden age that the US could get away with high taxes. Stick high taxes in a redundant economy and no one will stick around.

Anyway, high taxes are not a problem in and of themselves, it is disparity that is the problem. Why invest/work in a country with such high CGTs, Income taxes etc when neighbouring countries will give you higher returns? Only if the neighbouring economy is crap will you stick around.

On earnings I think progressively increasing taxes is just and fair - to compensate for the "tax" that is the cost of living. Ideally I think taxes should be placed on disposable income and not actual income, but calculating what is disposable/essential income would be a nightmare.

[9 ECAC Titles]

> calculating "disposable" income would be a nightmare.

Well, theoretically at least that's what having exemptions for self and children is all about.

[Victor Galis]

Guys, I'm not talking about expediency and efficiency. As berzerker says, I don't care about those. I care about right and wrong, just and unjust.

-Some of us think it is wrong for rich people to be able to live off their money tax free.

"Germany has other problems, such as their too-high income taxes, too many social services/programs/entitlements, no gun ownership, etc."

-Funny, everything you list as problem, I see as a good thing.

[Imran Siddiqui]

-No. Imran, the tax is only on the gains. i.e. the amount you make through this investment, not on the original ammount that was taxed.

But the initial investment was already taxed. The gains result from that initial taxed investment.

*hums 'Taxman' from the Beatles*

[David Floyd]

-Some of us think it is wrong for rich people to be able to live off their money tax free.

And some of us oppose theft.

-Funny, everything you list as problem, I see as a good thing.

Again, some of us don't see theft as a good thing.

[Rogan Josh]

Originally posted by David Floyd
And some of us oppose theft.

We seem to have a different definition of 'theft' here.

[David Floyd]

We seem to have a different definition of 'theft' here.

Apparently. My definition is something along the lines of "forcibly taking things which don't belong to you". What's yours?

[Dauphin]

Originally posted by Rogan Josh


We seem to have a different definition of 'theft' here.

It is theft. If someone came into your home and took 25% of your money would you not consider that theft.

[pchang]

It's all in the contract

I guess the government has not been living up to its part of the social contract which provides you the benefit of living in the US and its accompanying society in return for your following the laws of the US.

[Rogan Josh]

Originally posted by Sagacious Dolphin
It is theft. If someone came into your home and took 25% of your money would you not consider that theft.

But no one is coming into my home and taking 25% of my money. I don't pay taxes.....

I suppose you are one of these loony libertarian types who seem to think that you wouldn't get your head smashed in by a baseball bat if there was no government keeping order.

[David Floyd]

Well maybe it'd be OK with him if the other person really, really needed the money. Really. Not just to buy Whoppers, Nikes, and crack

I guess the government has not been living up to its part of the social contract which provides you the benefit of living in the US and its accompanying society in return for your following the laws of the US.

What in hell are you talking about? Just because the government legalized it doesn't change whether or not it's theft

[David Floyd]

I suppose you are one of these loony libertarian types who seem to think that you wouldn't get your head smashed in by a baseball bat if there was no government keeping order.

If someone was stupid enough to come at me with a baseball bat, he'd get a bullet.

But that's irrelevant, as no Libertarian supports anarchy.