I do understand capital gains tax vs. income tax. Capital gains tax is my big issue for this coming election. Hillary, if she's our next president, wants to raise capital gains tax which will most likely delay my own retirement from ten years out to who knows how far out.It's quite simple, unearned income is taxed at a lower rate than earned income.
The bulk of buffets income is from investments not from a W-2 paycheck
I don't understand people who don't understand this
2015 Tax brackets for reference:
http://www.efile.com/tax-service/tax-calculator/tax-brackets/
What I don't understand is how the top 1% is paying 50% tax as stated by Fox? Do they actually get a W2 for "earned income", as in receiving a real paycheck for the millions that they make? Or are they in the top 1% because of "unearned income" and therefor paying capital gains tax? Or is it combination of both (likely) in which case they're not paying 50%. It's the "top 1% is taxed 50%" part that I'm confused about. Who actually pays 50% tax in top 1%?