I'm not sure if it would increase or decrease revenue, but
by Tex Francisco (2024-02-19 12:38:32)

In reply to: A simple but unpopular idea  posted by OrangeJubilee

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I've always thought taxing capital gains at income tax rates, but with an inflation adjusted basis, seemed like the most fair and obvious way.

Pretty sure ths already happens for the upper middle class
by catripledomer  (2024-02-19 19:45:04)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

People who hit AMT pay tax on investments at their marginal tax rate. Only those who fall below or above the AMT threshold pay the ST and LT capital gains rates.
No it doesn't
by OrangeJubilee  (2024-02-20 09:30:39)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

I think you mean they pay at the AMT rate, which is 26% or 28%, well below their "regular income" marginal rate of 35% or 37%, and does not include SS and Medicare taxes that would add ~15% on. So it is still really advantaged vs. earned income.

Also, we are talking pretty far up the chain, not sure you can call anyone paying AMT "upper middle class". They are just upper class.

From the tax policy center:

"In 2019, the AMT impacted just 0.1 percent of households overall. This includes 0.2 percent of households with income between $200,000 and $500,000, 1.8 percent of those with incomes between $500,000 and $1 million, and 12.5 percent of households with incomes greater than $1 million (table 1)."
It seems incorrect to include SS and Medicare in this
by catripledomer  (2024-02-20 10:29:00)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

Even if you tax capital gains as regular income, it would still not be subject to payroll taxes. Are you suggesting we change that as well?
Yes, treat same as wages and uncap SS *
by OrangeJubilee  (2024-02-20 14:04:45)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply