Tax rate

[BonMallari]

If we are to pay taxes, the only fair solution is a flat tax for everyone! Somewhere around 2% of income and a balanced Budget Amendment to go with it. The more we pay in taxes, the more money that will be wasted by politicians.

This ^^^^^

Flat tax with an exemption is the best way. A national sales tax takes too much money out of the pockets of the disadvantaged.

or This ^^^^

makes good sense which means neither will happen...but would be a heck of a start

[Franco]

I know that. And I don't think any gain I make on my investments should be taxed. My income is already taxed. My real estate is taxed. My business is taxed. My utilities are taxed. My gasoline is taxed. I pay sales taxes (almost 10%) on just about everything I buy. I am being taxed to death.
Here's another way in which capital gains taxes are unfair, IMO.
Let's say I build a very successful business from the ground up through many years of hard labor, working 80 hours a week. Not that far fetched for small business owners to put in that many hours, or more.
Now I go to sell the business, and I have to pay capital gains tax on every penny I get for the business. The amount I owe the government is staggering.
Why did I bother to work all those hours? Why didn't I just sit back and suck off the system? When I figure out what I made hourly, I would have been better off having kid after kid after kid and collecting welfare and tax credits, free health care, and now even free cell phones with 250 free minutes a month.
Um yep, this is a real sore subject with me right now.
I think they should stop withholding taxes from everyones' paychecks, and send everyone a bill for the entire amount once a year. I think that's the only way we'll ever see tax reform.

You have become a slave to government. The Government isn't working for you but, you for them.

You've lost your Freedom, your Liberty to big fat Dem and Repub Government! I'm shocked more people aren't upset.

[hotel4dogs]

I think more people aren't upset because, as I said, they don't see the whole staggering amount at once. A little here and there, and withholding from their checks every week, it's not *really* noticed.
But send someone a bill for the entire $50,000 or more once a year, (EXCLUDING capital gains!) and I think more people will be VERY upset.

You have become a slave to government. The Government isn't working for you but, you for them.

You've lost your Freedom, your Liberty to big fat Dem and Repub Government! I'm shocked more people aren't upset.

[LokiMeister]

Now I go to sell the business, and I have to pay capital gains tax on every penny I get for the business.

No you don't get it. Any money you put into the business is not taxed as it has already been taxed. What about all the expenses with the business? You didn't get any benefit from that?

I think you need to settle down, relax and wait a few months before you make statements like this. As a small business owner myself, there are many benefits I get from owning the business.

[Franco]

Correct, one only pays Capital Gains on the profit and not the investment. One can avoid paying Capital Gains if they are able to find what is called a "Like Kind Exchange". I've done this several times in the past with raw land. For instance, when selling property, I have already identified investment property that I want to buy. The money from the sale rolls into the new investment and no Capital Gains taxes are paid.

[LokiMeister]

OR, if you are investing in stocks, for example, sell a stock at a loss to offset the gain of another stock.

[GoldenSail]

It's partly an individual state problem. Having grown up in Wyoming we had no income tax, only a 4% sales tax, and the state is not drowning in debt like California who appears to tax for anything and everything! Very cheap to live there too...but at the least populated of all the states in the country it can be a wee bit remote. I know people who joke at retiring to northern Wyoming though....no income tax in Wyoming, and no sales tax in Montana. Just drive across the border for your shopping..

[luvmylabs23139]

I think more people aren't upset because, as I said, they don't see the whole staggering amount at once. A little here and there, and withholding from their checks every week, it's not *really* noticed.
But send someone a bill for the entire $50,000 or more once a year, (EXCLUDING capital gains!) and I think more people will be VERY upset.

Isn't that the truth!!! And the other nutty thing is if you pay quarterly the slime balls expect for the second quarter, not a real quarter but 3 months of taxes paid with only 2 months of income or pay a penalty!

[luvmylabs23139]

Yes, you have paid taxes on that pay check but put $100 of that paycheck in an interest bearing account at a bank and earn $2 in interest. The Bank will give you a 1099 form (the income tax form) for $2, NOT $102.

Nope no 1099 for 2 bucks! Of course by law you are still required to report it.

[LokiMeister]

Nope no 1099 for 2 bucks! Of course by law you are still required to report it.

Oh silly me!! I should have just added another 0 to each number then we would have been okay. IT WAS AN EXAMPLE!!!