Sunday, July 10, 2011

Daily Kos: Let's get rid of the real "entitlement"

Daily Kos: Let's get rid of the real "entitlement"

Let's get rid of the real "entitlement"

which is taxing capital gains at a lower rate than income earned from labor.

Consider - you can be a middle class person, and your salary is taxed at 28% plus 7.65% for payroll taxes.

But if you simply buy a stock, even though it is of a preexisting company with share being traded on the open market, as long as you hold it 6 months your tax rate is only 15% on the income and no payroll taxes.

Corporate executives get much if not most of their compensation in things taxed as Capital gains - stock options, carried interest.

The things the press calls "entitlements" are in fact the basic fabric of the social safety net - Medicare,