Galaki said:
Funny I kept hearing about the tax loopholes. |
Yeah, people more or less lied to you about that by conflating the capital gains tax with the the income tax.
Some rich people tend to invest more, therefore make more of their income off of capital gains which are lower.
However, the percentage of rich people like that are actually pretty small. So they were argueing that a few hedgefund managers making less then an average person by their income being basically nothing but capital gans that every rich persons taxes should be raised higher even though the rest pay more then anyone else.
The Capital gains tax while lower is still progressive mind you.
So someone who makes a middle class income on capital gains is still paying a smaller percentage in taxes then a rich person.
It's just that middle class people don't make all their income on capital gains because stocks are risky as hell.
