Or put another way the Democratic Party wants economic fairness -- and the Republican Party want more Capital Gains charity for the "frightened" Capitalists of the world, like Sam Walton and Warren Buffet.
This is a difference we need to make obvious to all who vote ... to all who care about economic fairness. We need to make them care about Capital Gains rates too.
Forget Carried Interest, It's All About Taxing Capital Gains
by Joseph Thorndike, Contributor, forbes.com -- 11/12/2013
For a complex tax issue, carried interest sure gets a lot of media attention. That’s probably because it involves many very rich hedge fund managers -- the kind of people who everyone loves to hate, admire, and envy, thanks to their “hugely outsized earnings.” Last week, Democrats tried to tap this wellspring of discontent when they suggested raising taxes on the titans of Wall Street.
[...]
But one thing is not debatable: If you’re worried relative tax burdens, the capital gains preference is a problem. After all, it’s the capital gains break that allows Warren Buffett to pay tax at a lower average rate than his secretary. More generally, the preference reduces the average tax rate for anyone earning money from investments. People with lots of investments see a particularly big reduction -- people with names like Buffett, Bezos, Gates, and Gross.
[...]
More equal taxation, Gross insisted, would bolster not only fairness, but the economy, too. “Developed economies work best when inequality of incomes are at a minimum,” he wrote. In other words, everyone would gain from more equal taxation -- including hedge fund managers.
If surging inequality is our most serious problem, then abolishing the capital gains preference would be a step in the right direction. (Although it wouldn’t be a panacea, given the many factors that seem to drive inequality, including education, de-unionization, globalization, and technological change).
[...]
OK, so what is Capital Gains again, and how do those that receive them, also get additional tax breaks?
Definition of 'Capital Gains Tax' -- investopedia.com
A type of tax levied on capital gains incurred by individuals and corporations. Capital gains are the profits that an investor realizes when he or she sells the capital asset for a price that is higher than the purchase price.
[...]
It is important to note that it is net capital gains that are subject to tax because if an investor sells two stocks during the year, one for a profit and an equal one for a loss, the amount of the capital loss incurred on the losing investment will counteract the capital gains from the winning investment.
In other words, Capital Gains from financial investments, is how the "investor class"
gives back to society.
And thanks to their "privileged status," those receiving Capital Gains, also receive a reduced Tax Burden "incentive," when compared to the rest of us ordinary "worker class" Taxpayers ...
from apiexchange.com
ORDINARY INCOME TAXATION
[...]
In 2012, there are currently six tax brackets for taxing ordinary income: 10%, 15%, 25%, 28%, 33%, and 35%. These ordinary income marginal tax brackets are scheduled to expire at the end of 2012. In 2013, the 10% through 28% tax rates will remain the same and the top two rates of 33% and 35% will be replaced with higher rates, 36% and 39.6% respectively.
CAPITAL GAIN TAXATION
[...]
In 2012, the long term capital gain tax rate is 15% and this reverts on January 1, 2013 to the previous long term rate of 20%. Long term capital gains, on assets held for over one year, are subject to a lesser tax rate than short term capital gains from investments held for less than one year.
When will workers receive similar such "incentives"
to work, as hedge fund managers and professional money-changers receive
to speculate in the stock market ... to steer
or crash, the vast capital future of America?
20% tax rate for Capital Gains; 28% tax rate or higher, for our Work-a-day Pains.
Warren Buffett doesn't think it's fair -- neither should we.
Buffett urges Congress to raise taxes on the rich
Money Watch, cbsnews.com -- Nov 26, 2012
OMAHA, Nebraska -- Billionaire Warren Buffett is again calling for higher taxes on America's "ultrarich" and he's urging Congress to compromise on spending cuts and tax increases.
Buffett said the current tax system has contributed to the growing gap between rich and poor. He said he supports President Barack Obama's proposal to end the Bush tax cuts for the wealthy, but he'd prefer setting the point where taxes increase at $500,000 income instead of the $250,000 the White House proposed.
[...]
In the article, Buffett mocked the idea that investors would pull back if capital gains taxes increase. Buffett said he's never seen that happen even when capital gains taxes above 25 percent early in his investing career.
[...]
Buffett reiterated his call for a minimum tax of 30 percent on income between $1 million and $10 million, and a 35 percent rate for income above that.
Most Democrats would agree with Billionaire Buffett -- when he says that
he as a mega-millionaire should be taxed at the same rate as his secretary;
and most Republicans adamantly disagree, by routinely saying
the Rich are Taxed Enough Already.
This is a stark difference between the political parties. One that we need to make obvious to all who care to vote. To all who want to restore economic fairness again, to our once thriving economy.
Senate GOP blocks Buffett Rule bill
by Jeanne Sahadi, CNNMoney, cnn.com -- April 16, 2012
NEW YORK (CNNMoney) -- A proposal to implement the Buffett Rule was blocked in the Senate on Monday, but proponents of the millionaire tax vowed to keep the issue alive in the months ahead.
[...]
The GOP put the kibosh on the bill known as the "Paying a Fair Share Act," which embodies President Obama's proposed millionaire tax.
Here's the new and improved version of the bill:
S. 321: Paying a Fair Share Act of 2013 -- [113th Congress]
Introduced: Feb 13, 2013
Sponsor: Sen. Sheldon Whitehouse [D-RI]
Status: Referred to Committee
See Instead: H.R. 766 (same title)
Referred to Committee — Feb 15, 2013
Here's the Millionaire Tax bill that the GOP simply stopped in its populist tracks.
S.2230 -- [112th Congress]
Most millionaires today already pay a higher percentage of their income in federal taxes than the vast majority of all Americans. But roughly 25% of them end up with a lower effective tax rate than 10% of middle-income households, according to the Congressional Research Service.