| Capital gains tax is a tax that is levied on the | | | | our government. |
| conversion of an asset into cash. An example of this | | | | Yes, maybe the goose eats too much, we can all |
| conversion is when you cash in a stock or bond. You | | | | afford to go on a diet. Yet, you have to take good |
| have two types of capital gains, long term and short | | | | care of the goose regardless. The wealthy know to |
| term. | | | | take care of there finances and they hire the best |
| Long-term capital gains are based on assets that | | | | people to help them. |
| were held for more than one year. Short-term capital | | | | Let us move onto tax cuts. A tax cut comes in |
| gains are for assets that were held for less than one | | | | various forms. One of them is the exemption credit, |
| year. | | | | which can be increased to allow you to keep more of |
| In either case, you can still have capital losses just as | | | | your earnings. Another form of tax relief is lowering |
| much as capital gains. Capital losses will offset your | | | | the rate in which you are taxed through payroll tax |
| taxable income. Guess who will have more capital loss | | | | withholding; the rate itself can be lowered. |
| than capital gain this coming year? Wall Street, the | | | | Another form is through tax credits, which also allows |
| CEO's, the stockholders and bankers who had to | | | | you to offset a portion of your tax liability or eliminate it |
| liquidate their stocks and some other holdings. | | | | altogether. One credit that is currently refundable, |
| This is also inclusive of real estates holdings. I do not | | | | which means that you can receive a check that pays |
| want to get into all the boring calculations, you can | | | | you anything that is left over after you tax liability is |
| check with your accountant on that. The way a | | | | satisfied, is the earned income credit. |
| particular politician is talking, he makes it sound like | | | | Distribution of wealth is not a tax cut or a tax increase |
| corporations will shrivel up and die if they have to pay | | | | on capital gains. When anyone pays taxes, it simply |
| this tax. | | | | goes into the budget for our government to function. |
| That is not the truth. Capital gains are based off profits | | | | That tax money pays the military, social security, |
| after all expenses. Capital gains are usually not | | | | Medicare and governmental programs etc. |
| withdrawn from a market or allowed to transfer itself | | | | The fallacy that an increase in capital gains will hurt |
| to be subject to this tax unless the individual or | | | | small business is simply false. Capital gains are only |
| corporation "decides" to take the gains. | | | | paid when an asset is turned into CASH or the |
| I believe that about 60% or more of all Americans | | | | proceeds are received. Some people, mainly the very |
| have never filed a tax return having claimed capital | | | | wealthy, do not have earnings from a payroll check |
| gains. Now to lay it out a little bit more, there is a thing | | | | their earnings comes from capital gains or |
| called capital loss. Believe me in the next 2-3 years | | | | supplemental income. |
| there will be more capital loss than capital gains. | | | | The entrepreneur has many advantages currently to |
| The merchants of chaos would rather give this very | | | | minimize taxation than the normal person. They have |
| small advantage to the wealthy, than cut your tax rate. | | | | advantage to write off many business related |
| When you are making millions of dollars, you will not sit | | | | expense and they can choose many different tax |
| around and "worry" about a capital gains tax. | | | | structures to do this. |
| Millionaires and Billionaires pay "accounting talent" to | | | | If you are a W-2 person making 50K a year, the |
| help then avoid paying capital gains or keeping it to the | | | | entrepreneur can make the same amount of many |
| minimal. How many rich people have taken out ads | | | | and end up paying a lot less taxes than you will. The |
| and screamed fowl about capital gains? Here is the | | | | advantage is the write off that they have and you do |
| answer "none." They could not care less, because | | | | not. |
| most of very wealthy understand one thing, you feed | | | | Though this is a brief overview, I hope that you do not |
| the goose that lays the golden egg. The golden egg | | | | lend into the "idea" that raising capital gains tax will |
| represents our free enterprise system. The goose is | | | | negatively impact the normal business owner it will not. |