Quote:
Originally posted by Honclfibr
Given that she's a principal holder in a major corporation, doesn't it seem reasonable to assume that her primary source of income might be from the sale of stock / options held for more than one year and/or dividends on long term holdings? Which are taxed at 15% for someone of her income, down from 20% as part of the latest tax cuts.
However the inequity of it all isn't so bad when you consider that capital gains / dividends are directly related to corporate profits, which are already taxed at close to 50%. Besides that, the case that a low capital gains tax is necessary for a healthy economy has been made fairly decisively IMHO. Nonetheless, it does seem unfair sometimes that Joe CEO gets taxed at 15% on his 4 million dollar option sale while you get stuck at 25-30% on the income you earn doing actual work. |
sorry darrell, but there are SO many assumptions in your reply, I don't even know where to begin....
for starters, attributing what "she" owns is a can of worms all it's own. She may simply be a trustee to an entity that holds all her shares (read: holding company, on shore or off? maybe some parts through a captive or not, broken up by her sons/family?), IF, in fact she is a "principal" shareholder, however that might be defined.
oh, and btw, taxed at 50% IF they are outside of various holding structures.... furthermore, the realization of that 50% can be reduced by other various factors... It's fully within the realm of possibility that her tax return nets "0", zip, nada.... As a matter of fact, her tax return would likely be VERY different if she didn't stand to be a "high profile" person...