Tax Help Blog

When do stock trades cease to be capital gains and become ordinary income? Why make the distinction? Why have the bother of carrying over capital losses year to year allowing a mere $3000/year to be applied against ordinary income? Why should the ultra rich pay a mere 15% for long term capital gains while doctors pay 25% for putting in extra hours healing the sick? The answers aren’t always obvious but they are very important. We can simplify the tax code while making it more progressive by treating capital gains the same as ordinary income, but to do so requires making other changes, else the resulting double-taxation will indeed be too onerous. Details in the posts to come. [...]