O'reilly said there is currently no capital gains tax

[JonLP24]

I caught his show at 2am yesturday and in response to Obama at the debate he said "I will eliminate the capital gains tax on small business." O'reilly said "Newsflash senator, there is currently no capital gains tax." I'm far from an economics expert but I don't think Obama would repeatedly claim to eliminate the capital gains tax if there already isn't one. I'm sure O'reilly is lying but I'm hoping one of you fellow DUers can help me out with this one. He also said "if McCain was half as mad as I am he'd become President." :eyes:

[nichomachus]

1. As usual, it's a half truth

capital gains has been suspended -- not eliminated -- for some people in lower income tax brackets.

[JonLP24]

2. Thanks for the response

But there are capital gains taxes for small businesses and other higher income tax brackets?

[nichomachus]

3. Yes -- although I'm not a tax expert -- I just happened to know that bit

[JonLP24]

4. Thanks - I try to stay away from the Spin factory

I occasionally keep tabs on what the enemy is saying. He also taunted MSNBC with ratings while KO stats lies told by O'reilly, all O'reilly can throw at people is ratings :eyes:

[nichomachus]

5. In a nutshell

This tax year, for the first time in recent history, some investors may be able to completely avoid paying taxes on appreciated assets they've owned more than a year. It's an opportunity that doesn't come along often.

To qualify, taxpayers must fall in the 10% or 15% income tax brackets. For a married couple, that would mean taxable income must be $65,100 or less and single filers must earn $32,500 or less.

This potential tax break currently is slated to last until 2010.

[ContinentalOp]

6. But that's also a big loophole for the ultra rich.

If you make most or all of your money from capital gains and none from wages (as many wealthy people do), you get off tax free as well! I would think for a lot of corporate executives and business owners it would even be worthwhile to take a voluntary pay cut down below the $65k level for a year to get those capital gains tax savings. Then again, maybe there won't be many gains this year because of the economy.

[nichomachus]

7. I could be wrong, but

I think there's also a limit on how much you can shelter from the tax.

[dixiegrrrrl]

8. Wow..I lucked out then.

Cashed out a 20 K retirement fund, rather than have it disappear.
Not enough "gains" in it to hurt income tax, and no capital gains...
yay.

[TahitiNut]

9. For people with EARNED income less than about $35K, capital gains tax is ZERO.

If, for example, Michael Bloomberg who only takes a $1/year salary from New York City had no other wages or salary, he could sell assets worth MILLION$ in capital gains and pay NO TAX.

This ZERO taxation for capital gains for people in the 15% tax bracket is effective THIS YEAR ... through 2011.

It's a triumph for the fat cats ... and folks in wealthy families where family members with NO EARNED INCOME can dispose of assets for ENORMOUS capital gains and no taxation.


It should be noted that there's no such thing as some separate and distinct "capital gains tax" - only a distinct treatment of INCOME from capital gains as a part of the Income Tax system. The Federal Income Tax system is like ANIMAL FARM ... where all the income is equal but some is more equal than others. Even in the manner reported, care is taken to obfuscate the true scale of the numbers. The 'taxable gains' is calculated on a separate form as something far less than the ACTUAL gains. Thus, it's nearly impossible to mine the IRS statistics in a way that exposes the scale of the tax avoidance. It's sufficient to say that we PENALIZE people who WORK for a living and give a free pass to the folks who're enriched by the labors of others. The injustice of that is truly and deeply disgusting.

[gratuitous]

10. Since nobody's reporting any capital gains right now

The stock market's plunging, so who's making a capital gain?

On the other hand, though, if O'Reilly's really all that exercised about this (and I'll bet he's not), then he ought to be on McCain, too, as well as every last Republican for whom "capital gains tax cut" is a mantra on a par with "nom yoho renge kyo."