Capital Gains should be taxed at a higher rate than wages

[bullmoose88]

Taxing capital gains at a higher rate than wages will discourage investment in the stock market, and help lead us away from our addiction to stocks, an addiction which time and time again has led us to harmful cycles of boom and bust.

O Rly?  Boom and Bust is due to the stock market (primarily...in other words, getting away from capital investment means no more boom and bust)...even Opebo's video attributes it to the growing and shrinking of the money supply due to the creation and retirement of debt.

[bullmoose88]

Didn't vote.  For a start, not sure whether the proper rate for taxing capital gains (or not taxing at all) should be determined relative to wages, or anything...and even if we measure it against so called "real work" what the proper rate would be.

[bullmoose88]

Didn't vote.  For a start, not sure whether the proper rate for taxing capital gains (or not taxing at all) should be determined relative to wages, or anything...and even if we measure it against so called "real work" what the proper rate would be.

Perhaps a better phrasing would ask whether capital gains should be taxed at a higher, lower or equal rate as "all other income", as the distinction is currently drawn.

Additionally, Capital Gains (as the OP implies) covers much more than the simple selling of a stock held for longer than a year...we're talking the family home...dad's coins, mom's jewelry...junior's baseball cards...not exactly increases with a ton of effort, but still not necessarily the sole province of the rich.

[bullmoose88]

Didn't vote.  For a start, not sure whether the proper rate for taxing capital gains (or not taxing at all) should be determined relative to wages, or anything...and even if we measure it against so called "real work" what the proper rate would be.

Perhaps a better phrasing would ask whether capital gains should be taxed at a higher, lower or equal rate as "all other income", as the distinction is currently drawn.

True.  Point Taken.

 Another question I would have is...would increasing the LTCG rate really have the desirable result the OP supposes.  1) Would we escape economic harm in the transition away from an investment economy...2) Would such economy be immune to the boom and bust cycle...aka business cycle?

[bullmoose88]

Not all capital gains are alike.  To discourage volatility, I think short term capital gains should be taxed as ordiniary income, but to encourage investment, long term capital gains should be taxed at a lower rate or even not taxed at all if held long enough (say five years).

STCG (held < 1 year) are already taxed like ordinary income.  There are different gains rates for LTCGs depending on the type of asset...see a collectible vs. a stock etc.