If you are the CEO of a large corporation or you run a hedge fund and you are earning $15 – $20 million a year, you don’t need the last five mil to buy beans and put a roof over your head. Nope, ya sure do not.
The highest marginal tax rate needs to be 70% or higher. If that CEO or hedge fund manager cannot live on a half-mil a year, I have just the person who can show her or him how to do it. Just leave your email address in comments and we’ll be in touch.
And when it comes to capital gains – a 15% rate? That is all that Mitt Romney paid last year, on dividends and capital gains income of over $21 million.
People with capital gains did not lift a finger for the increase in value of the item they sold. It doesn’t make any difference whether it is a house or ‘X’ numbers shares of stock or a 500 acre farm. The receiver of this most generous tax treatment did not lift one finger or experience one drop of sweat in reaping the capital gains and then only pay tax on the gain at a 15% rate. Outrageous.
Capital gains tax should be the same as for ordinary income, at least 70% or higher.