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Originally Posted by DoubleF
Ideology? No. Just legalese that you need to understand and learn before you can properly understand the scenario.
I'll put it this way... if you're asking an earnest question, I'll attempt to give you an earnest response (albeit it may be overly simplified). There's a big difference between capital gains and taxable capital gains at times depending on the situation and you have to understand that the people replying you did not create the rules, they are just explaining to you how not to run afoul of them. No need for the ideology accusations.
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To clear up any confusion, I was responding to a different poster. That comment was not directed at you.
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If Jack has held an investment property for 50 years and it is not his principal residence, Jack is likely quite wealthy anyways, so why are you crying tears for him if he is upset he has to pay taxes? Your commentary indicates that you should be happy he's paying his fair share of taxes.
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Fair comment. I'm all for people paying taxes on capital gains, as long as those gains are actual real gains in buying power. Imagine for a moment if Jack's property value increased at only the level of inflation. He sells the property, and has the exact same amount of buying power from its sale as he had 50 years ago prior to buying it. He essentially gained nothing from the "increase" in property value. Yet he has to pay tax on that "gain". Am I the only one who thinks it's a bit odd that there are real taxes on imaginary gains?
In my view, yes we need to increase taxes on the rich. But this isn't the way. IMO.
Also, it's a mistake to paint all wealthy people with the same wide brush. On the one hand you have Jack who worked his ass off his whole life as a construction worker, and retired at 65 with a couple million dollars in net worth to show for it. On the other hand, you have Steve who was born into all kinds of privilege and advantages, and used those advantages to quickly rise to the top of the income ladder, and through mostly trading and investments reached a net worth of $100M before his 50th birthday. Sure, Jack and Steve are both wealthy, but the level of wealth they have and the way they got that wealth are dramatically different.