You might think that Republicans would love the capital gains tax, because it provides a way in which the super rich can pay taxes at a substantially reduced rate, 15% as opposed to 35%, on a substantial part of their income. If you did, you would be wrong. In the Republican view, 15% is too high a burden on the multi-millionaires and billionaires they represent.
The preferable treatment that investment income receives in the tax code is one of the factors driving the income inequality and galvanizing the Occupy Wall Street movement. Because the capital gains tax is capped at 15 percent, “anyone making more than $34,500 a year in wages and salary is taxed at a higher rate than a billionaire is taxed on untold millions in capital gains.”
The reason this low rate helps create an income divide is that capital gains are made almost exclusively by the wealthy. In fact, “over the past 20 years, more than 80 percent of the capital gains income realized in the United States has gone to 5 percent of the people.” And the concentration is actually far greater than that, as half of all capital gains are made by the richest 0.1 percent of Americans:
Income and wealth disparities become even more absurd if we look at the top 0.1% of the nation’s earners– rather than the more common 1%. The top 0.1%– about 315,000 individuals out of 315 million– are making about half of all capital gains on the sale of shares or property after 1 year; and these capital gains make up 60% of the income made by the Forbes 400.
It’s crystal clear that the Bush tax reduction on capital gains and dividend income in 2003 was the cutting edge policy that has created the immense increase in net worth of corporate executives, Wall St. professionals and other entrepreneurs.
This is why the various Republican plans floated to reduce or eliminate the capital gains tax are folly… [emphasis original]
Inserted from <Think Progress>
Note that we’re not even talking about the top 1% here. This is the top 1/10 of 1%. Essentially, all these flat tax plans Republicans are backing have one purpose: to allow the 315,000 richest Americans to pay no tax on 60% of their income.
15 Responses to “Why Republicans Hate the Capital Gains Tax”
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I didn’t even have to read this to know the answer, because they have exempted themselves from insider trading laws and even the wealthiest of them who get inside information from lobbyists who can no longer give them money and expensive gifts can give them insider information which allows them to make a killing at 15% in the stock market. And if they can wipe even that paltry sum out they will become even a more exclusive millionaires club. But the one good thing is maybe whats his name will pay all his 140 thousand dollar back child support when he is finally richer and in the club than the people who elected his dumb dead beat dad ass. I would have been in jail if I had not paid on time every penny of child support for 20 years.
You sure have that right!
Oh dear! Those poor, poor Fat Cats.
Awful, huh? 🙄
It is all really rigged isn’t it ?
The tax structure certainly is!
Does anyone really believe ‘The American Dream’ myth anymore…..really? Yes, Phyllis, it is rigged, it has been for decades if not centuries. There is another myth these bastards sell to those without self-will or common sense or even viable brain cells (I am talking about those who consistently vote against their best interests, i.e., Tea Partiers, hardcore lower middle class/working poor lifelong Republicans, Xtian Fundys, etc.) and that myth is; “You too can become filthy rich like us if you just work hard enough and play by the rules.” I think many millions are awakening from their brain-dead, shop ’til you drop consumerism, 10 to 12 hour treadmill job existence and are finally coming to understand that they have been lied to all their lives….and they are mad as hell. About time.
Terry, I still remember the time when a man with a middle class job could support a wife and family, own a home, educate his children, take vacations and save for retirement. All the resources that allowed that have been shifted to welfare for the 1%. I believe we can recapture it.
Terrie , I agree–100%
Glad to see you back, TomCat!
Greed only begins to tell it. There’s that power thing too!
Thanks, Maria.
Definitely!
These damn conservative Republicans are such hypocrites—they constantly piss and moan about welfare cheats who don’t make squat to begin with. But they think nothing at all is wrong with fat cats running their corporations in bogus offshore tax havens and hiding all their prpfits there too. Now who is the bigger scoundrel—the billionaire who cheats and knows better, or the poor person cheating out of necessity? G_ _ DAMN those crybaby Republicans! TAX THE RICH AND FEED THE NEEDY!!!
The 1% are the worst welfare cheaters of all.
Ok , I live in Canada but when I hear of millionaire/billionaires there whining about paying 15% on capital gains, it bites! I have a whole $209/yr in capital gains and I pay tax at 25% . Two different tax codes, two different countries but why whine?
As Ellen said on Care2, they are nothing but parasites! I also liked what Michael Carney had to say on Care2
“. . .Why Republicans hate Everything…Except Money, {their own} Authority, and Power…They have truly turned into a bunch of evil Facsists, with the goal of allowing a few to own everything, and to raid the National Treasury, for their own personal banks, at the expense of Middle Class, Working Poor, and Poor of our Country, they took all the money for themselves and their Corporate Masters, and then turned the Banks, loose on those same classes of people, and basically destroyed the Economy, broke the Middle Class and Poor, and destroyed the housing market…”
Definitely the tax code has to change and be fairer. There are other things that have to change as well but until the people hold politicians accountable, little will change. How do you hold politicians accountable — at the ballot box for starters. Then you get involved.
Part of my comment from a Care2 article by Kit B titled “The Great GOP Primary Crash and Burn: 5 Republican Would-Be Saviors Flame Out in Hilarious Ways”
“If you want change, then you have to DEMAND change, and have a clear idea what that change should look like. During the War of Independence, the governing American colonists raised a citizen militia to go against the British, citizens willing to fight as need be for the freedom of all Americans. Fast forward 235 years and the country still needs a citizen ‘militia’ but this time it’s not about fighting the British but it is about fighting the apathy of people who don’t vote and don’t participate.. It’s about fighting fpr freedoms in a modern context. I would say that the OWS movement is part of the modern day citizen’s militia. The Republican/Teabaggers, the 1% and the overstuffed large corporations are the British that need to be defeated to ensure freedom.
If you want something more than the Republican/Teabaggers and the Democrats, then start building. It will require a great deal of hard, painstaking work. It will require creative thinkers, leaders and a road map of the final destination, knowing that destination will always be evolving.”
Lynn, I agree completely except that getting involves should be immediate instead of after voting.