RECENTLY ON TOL:
- A tumblr site dedicated to the people and places that make up Oregon and Southwest Washington.
Re: capital gains taxes. Many years ago, on the federal tax return, these were referred to as "unearned income". That described it well.
I have worked for a living for over 40 years. On the income I earn from my sweat and labor, I pay the 9% Oregon state income tax. I invest my wages back into the local economy as I spend my paycheck. That creates jobs while at the same time my income taxes pay for the public services that make for a civil society.
I have also had capital gains on my small investments. The feds tax me less than the equivalent income taxes on that. If I am getting away with a little, the wealthy get away with a lot by being taxed much lower by the feds on this "unearned income". Recently I had a $100,000 gain on a property I owned in New Jersey. I paid $9,000 in Oregon capital gains tax on this. I sat passively as my property increased in value over many years, and reaped $91,000 on a property that cost me about $15,000. How can I possibly complain about that? If I had earned it in wages, I would have paid the same tax. Why should passive, "unearned income" receive better treatment than my hard earned wages?
This cherry picking of taxes to claim rich people will threaten to move if we tax them is outrageous blackmail. And there is no evidence other than anecdotal to back that up. Studies by OPB and the Oregonnian over the years have shown that Oregon has among the lowest overall taxes on business, and low overall taxes on individuals. Yet that hasn't resulted in businesses and wealthy people flocking here.
Let's not capitulate to greed. We all live her together and should all pay our fair share to assure a just and civil society. That, as Lola said on air, is true patriotism. My parents' generation came back from WWII and taxed themsleves at much higher rates than we do now (corporate and individual) to build the national highway system, schools, and much more infrastructure that I and my boomer generation benefited from. Now we are leaving a wasteland for our children because of our greed and selfishness. Our parents should be ashamed of us.
posted 2 years, 2 months ago
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