Quote:
Originally Posted by Amber Lamps
My biggest tax problem is tax on savings/interest. I don't think there should be one, period.
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Exactly. Why is someone's measly earnings from their savings acct or CD (which at MOST is giving them only 1% APR these days) taxed as regular income, but dividends & capital gains are only taxed 15%?
"Yeah, let's discourage the poor & middle class from saving anything"
Stocks are for somoene who already has a 6-12 month emergency savings stashed away into an FDIC-insured account. If you don't have that, you shouldn't be buying stocks. And since most people DON'T, their money is in regular bank accounts, and the interest is taxed as regular income. What kind of sense does that make?
Either tax all interest/dividends/gains at 15%, or nothing.