Capital Gains Master -- In Progress.docx - Millennial Speech Debate Capital Gains Tax Release \u2013 In Progress 1 Background.5 Key Definitions.6 Other

Capital Gains Master -- In Progress.docx - Millennial...

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Unformatted text preview: Millennial Speech & Debate Capital Gains Tax Release – In Progress 1 Background.....................................................................................................................................5 Key Definitions........................................................................................................................6 Other Definitions....................................................................................................................9 Trump Tax Reform.................................................................................................................10 History of Capital Gains Taxes in US......................................................................................12 US Rate High.........................................................................................................................16 Pro................................................................................................................................................17 General Growth....................................................................................................................18 Slow Growth Impact.............................................................................................................20 Recession impact..................................................................................................................22 Economic leadership Key to globe........................................................................................25 Competitiveness.......................................................................................................................30 Capital Gains Taxes Undermine Competitiveness Shell.........................................................31 Competitiveness Impacts......................................................................................................34 Competitiveness Key to Hegemony......................................................................................40 Answers To: Competitiveness Theory Wrong........................................................................45 Answers to: Competitiveness Not Key to Hegemony............................................................49 Innovation/Investment.............................................................................................................51 Artificial Intelligence Good....................................................................................................52 Capital Gains Taxes Undermine Investment..........................................................................54 Investment Key to the Economy...........................................................................................58 Increased Investment Increases Jobs....................................................................................59 Jobs Key to Economy.............................................................................................................60 Innovation Key to the Economy............................................................................................61 Impact – Innovation Solves Disease......................................................................................62 Impact -- Innovation Key to Competitiveness.......................................................................66 Impact -- Nanotech...............................................................................................................67 Markets.....................................................................................................................................70 Millennial Speech & Debate Capital Gains Tax Release – In Progress 2 Outsourcing..............................................................................................................................72 Overseas Job Shif.................................................................................................................73 Libertarianism...........................................................................................................................74 Double Taxation....................................................................................................................75 Social Justice.............................................................................................................................76 Minorities/Poor....................................................................................................................77 Progressive Welfare Spending Bad............................................................................................78 Doesn’t Work........................................................................................................................79 Undermines Marriage...........................................................................................................83 Increases Immigrant Poverty................................................................................................85 Answers to: Recipients Work................................................................................................90 Answers To: Welfare Cutbacks Increase Poverty...................................................................91 Oppression............................................................................................................................93 Privacy................................................................................................................................101 Health Care DA Answers.........................................................................................................106 No Right to Health Care......................................................................................................107 General Solvency Answers..................................................................................................109 Answers to Briefs....................................................................................................................112 Answers to: Need Federal Revenue/Deficit.........................................................................113 Answers to: But People Make Money.................................................................................115 Answers to: Other Taxes Have Decreased...........................................................................116 Answers to: Unfair to Tax Income and Not Capital Gains....................................................117 Answers To: Rich Benefit More From Growth.....................................................................118 Con.............................................................................................................................................123 Progressive Tax Structure........................................................................................................124 Inequality Constructive Shell..............................................................................................125 Capital Gains Important to a Progressive Tax Structure......................................................127 Answers to Other causes of Inequality...............................................................................132 Structural Violence impact..................................................................................................134 Millennial Speech & Debate Capital Gains Tax Release – In Progress 3 Inequality destroys the environment..................................................................................140 Income Inequality...............................................................................................................150 Capital Gains Key................................................................................................................153 Turns Economy....................................................................................................................154 Answers to: Growth Tricks Down to the Poor.....................................................................155 Libertarianism Answers.......................................................................................................156 White Privilege/Racism Shell..................................................................................................158 White Privilege/Racism Shell..............................................................................................159 Innovation Bad........................................................................................................................160 AI Bad..................................................................................................................................161 Eliminating Capital Gains Boosts High Tech Investment......................................................163 Health Care DA.......................................................................................................................164 Medicaid Good DA..............................................................................................................165 Health Care Link Extensions................................................................................................169 Answers to: Health Care Doesn’t Improve Health...............................................................170 Bioterror Impact.................................................................................................................173 Poverty Impact....................................................................................................................176 Answers to: Market Better for Health Care.........................................................................181 Deficits DA..............................................................................................................................186 Constructive Shell...............................................................................................................187 Deficits Undermine US Hegemony......................................................................................190 Deficit Undermines Small Businesses.................................................................................202 Military Spending Good Impact..........................................................................................203 Power Projection Impacts...................................................................................................206 Debt Hurts the Economy.....................................................................................................210 Deficit Destroys US Leadership...........................................................................................212 “Civilization” DA......................................................................................................................218 Answers to Pro Contentions....................................................................................................219 Answers to: Repeal Increases Growth, Lowering the Deficit...............................................220 Millennial Speech & Debate Capital Gains Tax Release – In Progress 4 Answers to: Repealing Capital Gains Boosts Jobs................................................................225 Answers to: Repeal Increases Growth.................................................................................226 Answers to: Boosts Investment...........................................................................................227 Answers to: Boosts Savings.................................................................................................228 Answers to: Innovation.......................................................................................................230 Answers to: Entrepreneurship............................................................................................232 Answers to: General Growth...............................................................................................233 Answers to: Economic Growth Reduces Inequality.............................................................235 Answers to: Stock Market...................................................................................................237 Answers to Jobs/Unemployment........................................................................................238 Answers to: Double Taxation Bad........................................................................................239 Answers to: Poor Have Investments....................................................................................240 Additional...................................................................................................................................241 Poverty Impacts......................................................................................................................243 Moral Obligation – General.................................................................................................244 Moral Obligation – Child Poverty........................................................................................247 Moral Obligation.................................................................................................................250 Dehumanization..................................................................................................................251 Racism.................................................................................................................................254 Structural Racism................................................................................................................256 Additional Bibliography...............................................................................................................262 Millennial Speech & Debate Capital Gains Tax Release – In Progress Background 5 Millennial Speech & Debate Capital Gains Tax Release – In Progress 6 Key Definitions “”Capital gain” refers to the increased value of the asset between purchase and sale Daniel Miller, CATO, 2014, I’m a Senior Fellow at the Cato Institute, a libertarian think tank based in Washington. I also serve as Chairman of the Board for the Center for Freedom and Prosperity, an organization created to defend and promote tax competition. I previously served as a senior fellow at the Heritage Foundation and also was an economist for Senator Bob Packwood and the Senate Finance Committee. I received my Ph.D. in economics from George Mason University and a B.A. and M.A. in economics from the University of Georgia, Forbes, The Overwhelming Case Against Capital Gains Taxation, Jason Clemens, Charles Lammam, and Matthew Lo have produced a thorough study for the Fraser Institute about the economic impact of capital gains taxation. Their study focuses on Canada, but the arguments apply in every nation. A capital gain (or loss) generally refers to the price of an asset when it is sold compared to its original purchase price. A capital gain occurs if the value of the asset at the time of sale is greater than the initial purchase price. As of 2017, the United States taxes short-term capital gains at the same rate as it taxes ordinary income. Long-term capital gains are taxed at generally lower rates, shown in color in the table below: The tax on collectibles and certain small business stock is capped at 28%. The tax on unrecaptured Section 1250 gain — the portion of gains on depreciable real estate (structures used for business purposes) that has been or could have been claimed as depreciation — is capped at 25%. The tax on most other investments is at a preferential rate of 0%, 15%, or 20%, depending on the tax rate that would be assessed on the same amount of ordinary income. (Qualified dividends receive the same preference.) The dollar amounts ("tax brackets") are adjusted each year based on inflation, and are afer deductions and exemptions, which means that there is another bracket, of income below that shown as $0 in the table, on which no tax is due.[2] For a single taxpayer electing the standard deduction in 2017, this amount is $10,400. Short-term and long-term capital gains taxes determined based on how long the asset is held Wikipedia, no date, Capital Gains Taxes in the US, In the United States of America, individuals and corporations pay U.S. federal income tax on the net total of all their capital gains. The tax rate depends on both the investor's tax bracket and the amount of time the investment was held. Short-term capital gains are taxed at the investor's ordinary income tax rate and are defined as investments held for a year or less before being sold. Long-term capital gains, on dispositions of assets held for more than one year, are taxed at a lower rate.[1] Millennial Speech & Debate Capital Gains Tax Release – In Progress 7 Am explanation of capital gains and how they are taxed Jane G. Gravelle, Senior Specialist in Economic Policy February 6, 2017, Capital Gains Taxes: An Overview, Capital gain arises when an asset is sold and consists of the difference between the basis (normally the acquisition price) and the sales price. Corporate stock accounts for 20% to 80% of taxable gains, depending on stock market performance. Real estate is the remaining major source of capital gains, although gain also arises from other assets (e.g., timber sales and collectibles). The appreciation in value can be real or reflect inflation. Corporate stock appreciates both because the firm’s assets increase with reinvested earnings and because general price levels are rising. Appreciation in the value of property may simply reflect inflation. For depreciable assets, some of the gain may reflect the possibility that the property was depreciated too quickly. If the return to capital gains were to be effectively taxed at the statutory tax rate in the manner of other income, real gains would have to be taxed in the year they accrue. Current practice departs from this approach. Gains are not taxed until realized, benefitting from the deferral of taxes. (Taxes on interest income are due as the interest is accrued.) Gains on an asset held until death may be passed on to heirs with the tax forgiven; if the asset is then sold, the gain is sales price less market value at the time of death, a treatment referred to as a “step-up in basis.” Current taxes on capital gains are imposed at a 0% rate for those whose income places them in the regular 15% bracket, and 15% for taxpayers in higher brackets, except for those in the 39.6% bracket. In 2017, the 39.6% bracket begins with taxable income of $470,700 for joint returns and $418,400 for single returns. Gain arising from prior depreciation deductions is taxed at ordinary rates, but there is a 25% ceiling rate on the gain from attributable to prior straight-line depreciation on real property. Gain from collectibles is taxed at 28%. There is also an exclusion of $500,000 ($250,000 for single returns) for gains on home sales. Health reform legislation in 2010 provided for a tax of 3.8% (the same level as the Medicare rate of 3.8% on labor income) on high-income taxpayers on various forms of passive income, including capital gains. The tax applies to passive income in excess of $250,000 for joint returns and $200,000 for single returns. In contrast to these provisions that benefit capital gains, capital gains are penalized because many of the gains that are subject to tax arise from inflation and therefore do not reflect real income. Capital gains taxes reduce wages Jane G. Gravelle, Senior Specialist in Economic Policy February 6, 2017, Capital Gains Taxes: An Overview, Millennial Speech & Debate Capital Gains Tax Release – In Progress 8 Health reform legislation in 2010 provided for a tax of 3.8% (the same level as the Medicare ...
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