Democrats SUCK!!

[Palehorse]

I think his temple garment is binding.

[The Troll]

What ever hard head.

  Just what is this, a hard shell back Alligator Snapping Turtle calling someone a hard head.    Why this is malarkey, Hard Shell. 

[me]

Does CBS News Approve Obama Using and Deceptively Editing 60 Minutes Piece for Anti-Romney Ad?



http://newsbusters.org/blogs/noel-sheppard/2012/10/18/does-cbs-news-sanction-obama-using-and-deceptively-editing-60-minutes

[Exterminator]

Does CBS News Approve Obama Using and Deceptively Editing 60 Minutes Piece for Anti-Romney Ad?

Nothing deceptive about it.  Even if the corporations Romney made money off of were taxed at 35% (which is doubtful), those were their taxes on their income and has nothing to do with the taxes he pays on his income.  Using his logic, every employee of every company should also pay a lower tax rate because the companies they work for also pay taxes.

[me]

I know you won't read this but here it is anyway.

Capital Gains Taxes

By Thomas Sowell - October 2, 2012
   

One of the many false talking points of the Obama administration is that a rich man like Warren Buffett should not be paying a lower tax rate than his secretary. But anyone whose earnings come from capital gains usually pays a lower tax rate.

How are capital gains different from ordinary income?

Ordinary income is usually guaranteed. If you work a certain amount of time, you are legally entitled to the pay that you were offered when you took the job. Capital gains involve risk. They are not guaranteed. You can invest your money and lose it all. Moreover, the year when you receive capital gains may not be the same as the years when they were earned.

Suppose I spend ten years writing a book, making not one cent from it in all that time. Then, in the tenth year, when the book is finished, I may sell it to a publisher who pays me $100,000 in advance royalties.

Am I the same as someone who has a salary of $100,000 that year? Or am I earning $10,000 a year for ten years' work?

It so happens that the government will tax me the same as someone who earns $100,000 that year, because my decade of work on the book cannot be documented. But the point here is that it is really a capital gain, and it illustrates the difference between a capital gain and ordinary income.

Then there is the risk factor. There is no guarantee to me that a publisher will actually accept the book that I have worked on for ten years -- and there is no guarantee to the publisher that the public will buy enough copies of the book to repay whatever I might be paid when the contract is signed.

Even the $10,000 a year -- which is less than anyone can earn on an entry level job -- is not guaranteed. If my years of work produced an unpublished manuscript, I would not even have been among the first thousand writers who met this fate.

Very similar principles apply to businesses. We pay attention to businesses after they have succeeded. But most new businesses do not succeed. Even those businesses that eventually turn out to be enormously successful may go through years of losing money before they have their first year of earning a profit.

Amazon.com spent years losing money before turning a profit for the first time in 2001. McDonald's teetered on the edge of bankruptcy more than once in its early years. Desperate expedients were resorted to by the people who ran McDonald's, in order to just keep their noses above the water, while hoping for better days.

At one time, you could have bought half interest in McDonald's for $25,000 -- and there were no takers. Anyone who would have risked $25,000 at that time would be a billionaire today. But there was no guarantee at the time that they wouldn't be just throwing 25 grand down a rat hole.

Where a capital gain can be documented -- when a builder spends ten years creating a housing development, for example -- then whatever that builder earns in the tenth year is a capital gain, not ordinary income. There is no guarantee in advance that the builder will ever recover his expenses, much less make a profit.

There are whole industries where no one can expect to make a profit the first year -- publishing a newspaper for example. Virtually every major American airline has lost money in some years, and some of the biggest and most famous airlines have ended up going bankrupt.

If a country wants investors to invest, it cannot tax their resulting capital gains the same as the incomes of people whose incomes were guaranteed in advance when they took the job.

It is not just a question of "fairness" to investors. Ultimately, it is investors who guarantee other people's incomes in a market economy, even though the investors' own incomes are by no means guaranteed. Reducing investors' incentives to take risks is reducing the jobs their investments are likely to create.

Business income is different from employees' income in another way. The profit that a business makes is first taxed as profit and the remainder is then taxed again as the incomes of people who receive dividends.

The biggest losers from politicians who jack up tax rates are likely to be people who are looking for jobs that will not be there, because investments will not be there to create the jobs.

[me]

http://www.taxpolicycenter.org/briefing-book/key-elements/capital-gains/how-taxed.cfm
Capital Gains and Dividends: How are capital gains taxed?

Capital gains are profits from the sale of a capital asset, such as shares of corporate stock, a business, a parcel of land, or a piece of art. Capital gains are generally included in taxable income but are often taxed at a lower rate; under current law, for example, most long-term capital gains face a top rate of 15 percent. Complicated rules impose a range of tax rates on different kinds of gains and can make it difficult for taxpayers to calculate their tax liability.
Graph1-Capital-Gains
Underlying Data: Download

    A capital gain occurs when a capital asset is sold or exchanged at a price higher than its basis (its purchase price plus commissions and the cost of improvements net of depreciation). Similarly, a capital loss occurs when an asset is sold for less than its basis. Gains and losses (like other forms of capital income and expense) are all measured in nominal terms-that is, unadjusted for inflation.
    Capital gains and losses are considered long term if the asset was held for over one year, and short term if held for a year or less.
    Taxpayers in the 10 and 15 percent tax brackets pay no tax on most long-term gains; under EGTRRA provisions, extended through 2012 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, and taxpayers in higher brackets face a 15 percent rate on long-term capital gains. In 2013, when all the temporary provisions expire, those rates will revert to pre-2001 levels: 10 percent for those in the 15 percent tax bracket or lower and 20 percent for all others. Recaptured real estate depreciation (that is, gains up to the amount of depreciation deductions previously claimed) is taxed at ordinary income tax rates up to a maximum of 25 percent. Gains on art and collectibles are taxed as ordinary income up to a maximum 28 percent rate. The maximum rates apply under both the ordinary income tax and the alternative minimum tax (AMT). The figure shows how the maximum long-term capital gains tax rate has changed over the years.
    Capital losses may be used to offset capital gains and up to $3,000 of other taxable income. The unused portion of a capital loss may be carried over to future years.
    Taxpayers may realize up to $250,000 of gains on their principal residence tax-free. Married taxpayers filing jointly may exclude up to $500,000 from tax.
    The basis for an asset received as a gift equals the donor's basis. However, the basis of an inherited asset is "stepped up" to the value of the asset on the date of the donor's death. The step-up provision effectively exempts from income tax any gains on assets held until death. Assets inherited from people who died in 2010 (when the estate tax was repealed) qualified only for a limited step-up of $3 million for gifts made to a spouse plus $1.5 million for gifts made to anyone. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 allowed estates of people who died in 2010 to choose between the 2010 law and the 2011 law, under which heirs get full step-up in basis but the estate is potentially taxable. (See What did the 2001-2010 Tax Acts do to the Estate, Gift and Generation Skipping Transfer Taxes?).Individuals may exclude up to 50 percent of capital gains on stock held for more than five years in a domestic C corporation with gross assets under $50 million on the date of the stock's issuance.
    C corporations pay the regular corporate rates on the full amount of their capital gains and may use capital losses only to offset capital gains, not other kinds of income.
    Capital gains may face effective tax rates above the statutory rates because of phase-outs in the tax code. For example, taxpayers in the phase-out range of the AMT exemption incur an implicit surtax of 6.5 percent (for taxpayers in the 26 percent AMT bracket) or 7 percent (for taxpayers in the 28 percent AMT bracket).
    I you find this description mind-numbingly complex, you have captured the essence of capital gains taxation.

[Exterminator]

I don't need some plagiarized article from a right-wing web site to explain to me what capital gains are, thank you.  What that article essentially says is that you should pay less taxes on your gambling income than you do on the income that you actually had to work for and I think that's garbage.  Perhaps had you actually worked...and I don't mean sporadically when you felt like it, I mean really worked, every day, every week for your entire life...you would understand.

[me]

I don't need some plagiarized article from a right-wing web site to explain to me what capital gains are, thank you.  What that article essentially says is that you should pay less taxes on your gambling income than you do on the income that you actually had to work for and I think that's garbage.  Perhaps had you actually worked...and I don't mean sporadically when you felt like it, I mean really worked, every day, every week for your entire life...you would understand.

For a supposedly educated person you sure can't seem to grasp some things.  I have a feeling you just take your shit in a bag, or maybe a folder, to your CPA and let him/her do it all and never get into the real working knowledge of it.  Of course if you never invested or had anything but ordinary income and interest you probably wouldn't get into that part so you'd believe anything your told.

[Exterminator]

For a supposedly educated person you sure can't seem to grasp some things.  I have a feeling you just take your shit in a bag, or maybe a folder, to your CPA and let him/her do it all and never get into the real working knowledge of it.

Actually, I do my taxes myself and always have.  It really isn't rocket science, especially inasmuch as it isn't that far removed from what I do for a living.

Of course if you never invested or had anything but ordinary income and interest you probably wouldn't get into that part so you'd believe anything your told.

LOL!  Perhaps if that were even close to being true, you might be on to something!

[me]

Actually, I do my taxes myself and always have.  It really isn't rocket science, especially inasmuch as it isn't that far removed from what I do for a living.

LOL!  Perhaps if that were even close to being true, you might be on to something!

Hey, if you can toss out arbitrary bull shit about me I can do it about you too ya know.  I just don't happen to care to get as vicious with it as you do.

[Exterminator]

Hey, if you can toss out arbitrary bull shit about me I can do it about you too ya know.  I just don't happen to care to get as vicious with it as you do.

This belongs in the TUZ lie tracker thread.  I just don't whine about my sore meat curtains when you do it.

[me]

This belongs in the TUZ lie tracker thread.  I just don't whine about my sore meat curtains when you do it.

I'll go Troll on ya if ya don't chill out. 

[Exterminator]

I'll go Troll on ya if ya don't chill out. 

You mean like this?     

[me]

You mean like this?     

Hey that's not fair I said it first.... 

[Henry Hawk]

Damn, that will put you into a epileptic seizure.........no wonder the Troll acts the way he does!