Your Boring but Necessary Educational Video of the Day

Today it’s Six Reasons Why the Capital Gains Tax Should Be Abolished:

Unfortunately, though these arguments are compelling (as compelling as a guy in a suit talking into the camera for six minutes can be), they’re unlikely to make much of a dent, because America’s tax system is largely based not on facts but on jealousy. If the capital gains tax (or the death tax or any number of other taxes) were abolished, the loudest complaints wouldn’t be about the fiscal impact on government operations.  They would be howling protests that we weren’t sticking it to the rich enough.

2 thoughts on “Your Boring but Necessary Educational Video of the Day

  1. Out of curiosity, first off, pardon me for dropping in and leaving a comment (I just happened to wander by this blog a while ago), but I am wondering, does the capital gains tax apply only to “the rich,” however that’s defined? From the examples in the video, I get the impression that anybody who sells something for more than they originally got it for–for instance, if I bought a rare Nintendo game back in the 80s for 5 bucks, and then sold it to a collector for 500, I’d have to put down some ‘capital gains’ stuff on my tax form. If this isn’t the case, I can see where the problem is, but I have to wonder, if it is, how is the capital gains tax “sticking it” to the wealthy if the rest of us less productive/valuable/whatever (i.e less wealthy) members of society have to pay it as well?

  2. No need to apologize for reading and commenting on the blog. I’m the one who should apologize for taking so long to respond.

    My point was not that capital gains taxes stick it to the rich, but that people think they stick it to the rich. It would be politically hard to repeal because people would view repeal as a sop to the rich. But you are correct: everybody is supposed to pay capital gains taxes, even on rare nintendo games and pretty much everything else (sale of your home is one thing that’s exempted, but even that’s only exempt up to a certain amount).

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