Tax All Income the Same
Not all income is treated and taxed the same way. Salaries and wages are taxed at ordinary income tax rates. Dividends, capital gains, social security income, and carried interest or investment interest are given favorable treatment and are taxed at much lower rates. This is not fair to the working population of the United States. This favoritism distorts income distribution, lowers the saving rate, and distorts the wealth distribution. Tax dividends, social security income, and carried interest or investment interest at ordinary tax rates. For capital gains, continue the current favorable tax treatment for them since they are earned over a long period of time. However, change the holding period for capital gains from 1 year to 5 years. This insures that the gain is earned over a long period of time and it rewards long term investment rather than mere speculation.
Harry Pukay-Martin
