GS: August 2008 Archives
The current US tax system taxes Ordinary Income at a significantly higher rate (>35%) than the Capital Gain (15%). Thus Warren Buffett's tax rate is lower than his secretary.
In my opinion we must have a same flat tax rate (like 20%) for individual income tax, corporate income tax and long term capital gain. We can make it progressive by deducting the first 100k and indexing it for inflation. Thus families making less than 100k pays no tax and even a upper middle class family with say 200k income pays like 10%
Said all this, i dont think this will happen in my lifetime :)
See the WallStreet Journal analysis below...Where is my incentive to work, if more than 60% of my income goes to uncle sam?
