CAPITAL GAINS, AMERICAN JOBS & THINKING OUTSIDE THE BOX
I have long been a believer that capital gains should not be taxed at a lesser rate than income earned from working hard. However, this idea doesn’t appeal to the millions of people in our country who take advantage of the capital gains 15% tax rate (myself included).
I also am quite concerned about the need to create jobs in our country that can bring down the unemployment rate and re-establish the middle class.
Here is a suggestion that could help:
Tax capital gains income at the same level as earned income. However, allow a person to avoid paying that added tax amount by purchasing products manufactured/assembled in the US equal to the difference. For example; if I had capital gains in 2011 of $50,000 and a 30% tax level on earned income, I could avoid paying the 30% rate on capital gains by purchasing American made or assembled products equal to $7,500. Food and fuel would not be included.
The government would develop a listing of companies whose products would qualify. All American manufacturing or assembling companies would apply to be placed on the listing. The value of a product must exceed $10. Automobiles manufactured or assembled in the country would qualify. Used products would not. Homes, boats,
tools, clothes, bedding, are some qualifying examples.
An individual, to qualify for this feature would be required to keep proof of purchase in the same manner as one who keeps proof of contributions to charitable organizations.
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