Are Capital Gains and Dividend Taxes Too Low?

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Marginal Tax Rates

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Paying No (Federal Income) Taxes

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Cartoon: Taxes

Cartoon: Tea Party Protests

My thoughts: Why do Republicans only act fiscally conservative when they are out of power?

Income Taxes

US Tax Rates: 1979 v 2005

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2006 Tax Collection

from Visualizing Economics

Capital Gains Taxes

Taxing capital gains at a lower rate than ordinary income is a long-established policy to encourage risk taking and investment. Since we already tax corporate earnings at 35% through the corporate income tax, taxing those profits again when the stock is sold imposes a double tax on risk capital. That's why 12 industrialized nations, including Hong Kong and Korea, impose a zero capital gains rate.

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Republicans: decrease rates to increase revenue
Democrats: increase rates to increase revenue

Me: Why not let people keep their money and have a 0% capital gains tax rate?

Capital Gains: Cut Rates and Increase Revenue