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Abolish Capital Gains Tax Now
Thursday, February 10, 2005
By Gordon Bishop
Americans are the worst savers in the industrialized world when it comes to money.
Why would anybody want to save money in their banks or in their investment portfolios if the federal government taxes whatever they save or invest?
Actually, the onerous capital gains tax is a “double tax.” First the government taxes your income. Then whatever you put away for retirement, they tax your “nest egg.”
This is greedy, heavy-handed taxation.
Imagine, you work all of your adult life and retire at 65. If you and your spouse receive Social Security and a pension, they will be taxed on that joint income if it exceeds $48,000.
If you live in New Jersey, as I do, you are considered “rich” if you and your spouse exceed the $48,000 income threshold.
Our founding fathers declared war on Great Britain in 1776 over “Taxation without Representation.” In those days, there were no income taxes or sales taxes or property taxes. After the Tax Revolution, America was truly the land of the brave and the free.
Now we’re the land of the taxes and the weak.
Today, we have excessive representation and excessive taxation – and a multi-trillion dollar federal government that’s draining taxpayers of what little savings or investments they worked hard to put aside for their retirement.
Presidents Ronald Reagan and George W. Bush have failed to abolish the anti-American capital gains tax. With Republicans now in control of both Congress and the White House, this is the time to act for all working taxpayers and those senior citizens seeking to live on fixed incomes.
I have just experienced what the capital gains tax can do to your “nest egg.”
My wife and I are moving to a new house in an adult community the end of this year. I made a mistake removing $37,000 from my modest investment portfolio. My accountant told me I would be hit with a $12,000 capital gains tax on the $37,000 I needed to put down on my house so it could be built this year.
My accountant read me the riot act. He advised me to take out a home equity loan and give the money back to my investment portfolio manager. Instead of making money on my “nest egg” investments, I will be paying off the home equity loan at 6.97 percent interest each month at a cost of $261. Over 11 months of payments will set me back almost $3,000 in interest costs.
In other words, I had to “mortgage” our house, which we had paid off 12 years ago. We had no mortgage. Now we have a mortgage again, which they call a home equity loan.
Rather than lose $12,000 in capital gains taxes, I will lose some $3,000 in interest payments.
That’s the reality of working in a country where thoughtless tax-and-spend politicians are ruining families, seniors and companies who find they can no longer compete in the marketplace after paying all of their taxes. That’s why so many companies have moved out of America to avoid the heavy taxes and costly government regulations.
Every taxpayer must support President Bush and the Republican-controlled Congress to get rid of capital tax gains this year.
We need another Tax Revolution. This revolution can be a bloodless revolt. Use the power of your vote and begin the downsizing of a government taxpayers can no longer afford.
The taxpayers and voters are the boss. This is their country, not the politicians or the special interests.
Join the 2005 Tax Revolt and return America to the land of the brave and the free – freedom from oppressive, wasteful taxation.
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