So? IMO, income should be income. I would not add the
Complexity of indexing to inflation, which is not even the same nationally, especially for real estate.
If I W2 50k, that provides more purchasing power in some parts of the country than others, and can be eroded more quickly in a higher inflation environment. Yet my 50k is taxed the same, whether I earned it in San Francisco, CA or Bismarck, ND.
Part of my problem with taxing cap gains differently from ordinary income is it amounts to a disincentive to work. I should not be better off from a tax perspective sitting on my ass watching my investment portfolio increase in value than if I actually drag my ass to a job every day (even if I spend too much time posting on a message board).
But - all rates would have to come down significantly, and deductions would almost entirely go away, so my idea is not politically tenable, unfortunately.
|
(
In response to this post by Hoodafan)
Posted: 08/10/2020 at 12:25PM