[FoRK] Clarification on 401k, also further details of Obama's position re: investment income

[Russell Turpin]

Jeff Bone:
> None of which matters a whit when the idea behind such a tax increase
> (ideology, "rich" - remember, above-the-mean wealth - people are evil,
> their gains are ill-gotten, screw 'em, and use tax policy to do so) is
> so disconnected from the reality (79% of capital gains payers in 2005
> earned under $100k.) The clear statement is that investment income is
> in some way less legitimate than earned income. ..

Being an ordinary yokel who pays tax on dividends and on capital gains,
I quite sympathize. The problem is my young nephew. He has this notion 
that earned income is just as legitimate as investment income, and 
shouldn't be taxed at much higher rates. Which it now is. I've tried 
explaining to him that capital is just old labor saved, and that the 
lower rate for capital gains is just the proper deference given to 
age.  
   


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