Interesting proposal from the Obama Fiscal commission.

[napi21]

The Naked Truth About Capital Gains

When it comes to taxes on capital gains, the emperor suddenly has no clothes. He's been stripped bare, in bipartisan fashion, by the co-chairs of President Obama's fiscal commission.
The chairs are Republican Alan K. Simpson and Erskine Bowles, a Democrat. Their initial report included a call for equal taxes on capital gains, dividends and ordinary income such as wages. This upends the current tax code, and it contradicts almost the entire history of capital gains taxes in America.
Implicitly, it also rejects the K Street claim that tax breaks for capital gains grow jobs, grow businesses and grow the economy. If the claim had any truth, Messrs. Simpson and Bowles would never support equal taxes on all income as a way to help cut the national deficit.
Liberals instinctively attacked the right-leaning aspects of the report. House Speaker Nancy Pelosi, in full "no" mode, labeled its recommendations "simply unacceptable." Not quite, Madam Speaker; apropos investment income, Simpson/Bowles is a Democratic dream come true

They could start by revisiting the tax code and creating capital gains tax breaks that really would grow jobs and stimulate the economy. Small companies with big dreams raise seed money through initial public offerings (IPOs) and secondary offerings; larger companies sometimes do the same (e.g., the resurgent GM). In a move that would give a built-in boost to the market for new issues, capital gains on these investments could accrue tax-free. Interest on corporate bonds, now taxed as ordinary income, also deserves a tax break. Corporate bonds raise the money to build corporate infrastructure, much like municipal bonds raise money to build local infrastructure. Interest from municipal bonds gets tax breaks; why not corporate interest?
How to pay for these new tax breaks? Easy: the money would come from ending the unproductive tax break

http://www.truth-out.org/the-naked-truth-about-capital-gains65426

It disturbs me that no one in any nedia even mentioned this as part of that commissions plan! All they talk about are thebad ideas like the SS recommendations. Apparently they're al just trying to paint a really bad face on the commission & that Obama appointed them.

[DJ13]

1. The insistence on lowering the top incomes down to 23% is a deal breaker

They are advocating a flat(er) tax, which is a bad idea.

[notesdev]

5. if they get rid of all the breaks it's a big win

Warren Buffett paid 12% effective rate and I'd wager that's not too far off from the general reality for the nation's top earners. 23% is double what they paid before.

[napi21]

6. That's not the way I understood it. They were simply stating that dividends &

capital gaines be taxed at the same rate as ordinary income. I think that's a GREAT IdEA!

[xchrom]

2. Cuts to SS and Medicare will damage far more people

Than any inconvenience caused by taxes on capital gains.

Obama owns and the damage done if that happens.

We've needed taxes on capital gains for a long time.
We didn't need a commission that seeks to hurt seniors
To tell us that.

[westerebus]

3. Double plus good.

So that's how the intend to lower the tax rates for everyone and eliminate some exemptions by expanding the definition of income. Works for me.

Not so much for the uber class.

Next question.

How will congress screw this up?

[westerebus]

4. Universal Health Care.

Why didn't I think of that? smacks head