Letters to the Editor

Your views in 200 words or less

Tag: capital gains


TAXES: Capital gains isn’t a reliable revenue source

Our governor’s 5 percent capital gains tax proposal on the “rich” to fund schools sounds good in theory. The theme is the “rich” can afford it and should pay more. That plays real well in the press.

The problem with theory is that is does not meet reality. First, capital gains income varies from year to year depending on the stock market. When the market goes down, as it always does over time (remember 2009 when it dropped from 14,000 to 6,300), there was no capital gains income to report. No gains, no revenue. Then what, governor?

Second, the “rich” have an

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TAXES: Inslee proposes a tax-and-spender budget

Re: “Inslee budget highlights” (TNT, 12-19).

What a surprise. To address a $2 billion state budget shortfall, Democratic Gov. Jay Inslee is going to up the cigarette tax and throw in new taxes for capital gains and carbon emissions. And repeal more than several current tax breaks.

Washington’s cigarette tax is one the highest in the country and will burden the heaviest smokers, often those struggling to get by. Imagine the wonderment as cigarette tax revenues evaporate to nearby states, where legions of Washingtonians already buy their liquor. Sin taxes are the first and last refuge of a tax-and-spender.

Capital gains tax

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TAXES: Same old capital gains tax fallacy

A recent letter writer stated that “There is a difference between wage income and capital gains. There is no risk when you have a job” (TNT, 2-21).

Of course there is. People invest in their earning potential all the time. People invest money and time to get licenses, certifications, college degrees and so forth. There is no guarantee that those investments will pay off. Just ask the millions of people out of work if investing in themselves has always paid off. Total college loan debt is almost $1 trillion and rising.

Human capital is created by investment from past

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TAXES: Keep rates low on capital gains

Re: “Why should Lady Gaga pay a higher tax rate than Mitt Romney?” (Katie Baird column, 2-14).

Your initial investment for any capital gain comes from income you paid regular taxes on. You have to take a risk to make a capital gain. If the investment doesn’t pay off, you lose the investment.

There is a difference between wage income and capital gains. There is no risk when you have a job. Yes, you could lose it or have to take a pay cut, but you are not risking money to earn it.

Baird talks about middle-class day traders

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TAXES: Baird’s right on taxing capital gains

Re: “Baird’s naive about tax rates” (letter, 2-4).

The one who “is naive or deliberately misleading” is the letter writer, not Katie Baird (column, 2-1). What he fails to understand, or purposely distorts, is the fact that it is the gain on his investment which is taxed, not the after-tax money he originally invested. Hence the name, capital gains tax, which is not double taxation as he states.

Gain on investments is the same as putting money into the credit union and earning interest which is taxed as ordinary income while the investment income receives a favorable tax

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TAXES: Capital gains are profit, not income

Re: “Baird’s naive about tax rates” (letter, 2-4).

The writer sees capital gains as income, but they are actually profit. Yes, some people invest using ordinary income received as wages, which they have already paid tax on. The capital gain on these investments (dividends, etc.) is not taxed twice; it is profit, which has never been taxed.

Taxpayers who lose money on investments are allowed to declare a loss on their tax returns because the loss is viewed as lost profit, not lost income.

Many people invest with money they don’t receive as ordinary income or wages, especially the

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TAXES: Baird’s naive about tax rates

Re: “Loopholes for wealthy weaken fairness of income tax system” (Katie Baird column, 2-1).

It’s amazing that a supposed economics professor can be either so naive or so deliberately misleading in writing about various tax rates.

She does not understand nor convey that people who generate income from capital gains use their own money that has already been taxed as ordinary income. Then, as they invest in financial instruments and companies to generate income, they are taxed again at 15 percent. So, those who choose to invest and provide working capital to companies who can provide jobs are taxed

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