You Can't Get There From Here

You Can't Get There From Here

The Economic View in Sunday's New York Times by Harvard economics professor N. Gregory Mankiw (Capital Gains, Ordinary Income and Shades of Gray) defending special tax rates for carried interest brought to mind the old joke about a tourist asking a Maine farmer for directions to Augusta...

The Times viewpoint gives examples of why it's so hard to distinguish ordinary income from capital gains income, noting "Critics of current law think it is unfair that these private equity partners are taxed at capital gains rates, whereas other high-income individuals like doctors and lawyers pay the much higher tax rates for ordinary income." The article concludes: "Not all problems have easy answers."

I have an easy answer for this one: TAX ALL INCOME AT THE SAME RATES...

View TaxAnalysts'® Chris Bergin's opinion in its entirety on TAX.com.

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