Ponderable

messy said:
Because money earned from the sale of a capital asset, like stock or a house (provided you have held them for a year so it’s “long-term”), is called “capital gains” revenue and is taxed at about half of the rate at which your paycheck is taxed. The tax system favors capital over labor and the government wants less of the money you made from selling stock (or your house) than the money you earn at your job.
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Exactly. Hence my question in your other post below regarding you paying ordinary income tax rates on your work earnings and Income-producing asset income, which you explain above perfectly. Except for the part where you assume that the government wants less of the money from those same income producing assets than your job earnings. Here is another fine example of you initially not understanding what you posted but clearly explaining why you posted what you posted after the fact. Don't be so quick to post. Had you waited 38 minutes, you would have posted the above and not seemed so confused as to how passive and active income are taxed different.

QUOTE="messy, post: 244222, member: 3299"]Unfortunately, I work for most of my income, so I pay ordinary income tax rates on it. Income-producing asset income is also ordinary income, like rental income and tax dividends. It’s when you sell the asset that you get the much lower taxes. Has that ever happened to you, Iz?[/QUOTE]
 
espola said:
One point that should not be missed is that one can purchase stock assets by paying only a portion of the price, the remainder being in the form of a loan from a bank or brokerage account, secured by the stock itself, obviously parallel to the method often used to purchase a principal residence asset.
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And when the brokers call on those Margin accounts, what happens? Does the broker foreclose? Once liquidated for an amount less than what is owed on margin, who pays? Can the stock owner buy insurance similar to PMI? Collateralized debt is much safer if the government isn't encouraging risk taking buy purchasing MBS's in the secondary market.
 
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Bruddah IZ said:
#5 But it is an entire field invented by government taxation. If the capital gains tax didn't exist, all of those valuable workers and capital could be allocated to more economically beneficial means.

The above is what Kamala and AOC don't get. Or worse they do and they think they know better than 300 million people what they actually need.
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So workers should pay income taxes on their earnings but non-workers who make profits on stock and houses should pay no taxes on their profits?
 
Bruddah IZ said:
And when the brokers call on those Margin accounts, what happens? Does the broker foreclose? Once liquidated for an amount less than what is owed on margin, who pays? Can the stock owner buy insurance similar to PMI? Collateralized debt is much safer if the government isn't encouraging risk taking buy purchasing MBS's in the secondary market.
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Hey dummy. People who can't pay their debts lose shit. Is that news to you? You keep bringing it up like an idiot.
 
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