Quote:
Originally Posted by classicman
Hmmm. This is where the Capital gains get a little fuzzy also. I earn money from my job, I get a paycheck. I pay taxes on it. Then I invest it and get taxed again. Isn't that a little odd?
I'll go back to my tax all income at the same rate regardless.
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finish your thoughts here.
you work
you get paid
you pay taxes on that income.
you use your money (post tax, of course) to buy something.
If it's a pack of smokes or a gallon of gas or a tv or whatever, you probably pay sales tax on it.
Are you saying that's "double taxation"?
what if you use your money to invest it? There's no tax on that investment. No tax on investments. Read my lips.
Now, when you sell it, if you make a profit, that profit is taxed.
If you take a loss, you can deduct the loss from your income (generally speaking), reducing your taxes.
If you keep it and you receive dividends, the dividends are income, and are taxed.
If you make your living buying and selling, the profit you make from those sales is your income. that income is taxed. Where the money came from to make the purchase is irrelevant.