Quote Originally Posted by NJCardFan View Post
Once again for the slow to learn: Romney made money. He was taxed on that money. He took what was left and invested it. Those investments lead to more money(not all the time this is why investing is a risk). The money he makes from those investments is called a capital gain. Based on that, he is taxed on these capital gains. Now I'm going to go real slow for you, k? This means that the money that was already taxed and made him more money is taxed AGAIN. Hence, he is being taxed twice on basically the same dollar. Now, you, Obama, and everyone else who works and takes in an income gets taxed on that income ONCE by the federal government. Understand now?
Thank you.

This is, in fact, the major reason capital gains are taxed at a lower rate. Taxes on earned income are higher than those on investment income. If you are someone who earned income (taxed) and then invested it (taxed again) you are getting double taxed. That's why so many people want the capital gains rate to go to zero.

On the other hand, one can argue that some people inherit their wealth and never work, so they never work (no tax) and all they have is investment income (taxed at a low rate). It's this type of thing that creates resentment and the desire to "tax the rich."