More Than Half Of Americans Say Tax Capital Gains Like Work: Survey

Most Americans agree: The U.S. should alter the rules that allowed Mitt Romney to pay taxes at a lower rate than someone in the middle class.

Slightly more than half of Americans say capital gains -- or profits made from investments and property -- should be taxed at the same rate as income earned from labor, according to a New York Times/CBS News poll. Currently, capital gains are taxed at a maximum rate of 15 percent, although certain capital gains can be taxed at a higher rate. The top marginal tax rate for wages is 35 percent.

The findings come shortly after Romney, a top candidate for Republican presidential nominee, released his tax returns following mounting pressure from his opponents. In 2010, Romney and his wife paid a 13.9 percent tax rate -- lower than that of someone earning $50,000 -- on their combined income of between $190 million and $250 million. That's in large part because such a larger percentage of Romney's income comes from capital gains.

Romney's tax returns rekindled a debate over taxation that billionaire investor Warren Buffett fueled last summer when he penned an op-ed calling for the super-rich to be taxed at the same rate as the middle class. President Obama adopted a proposal inspired by Buffett, indeed calling it "the Buffett rule," which he touted as part of his American Jobs Act and in the State of the Union.

The capital gains tax that largely benefits the super wealthy, who make the most off investments, is currently at its lowest rate in decades. In 1978, the tax rate on capital gains was nearly 40 percent, according to a graphic from Visualizing Economics. It then dropped in the 1980s, rose steadily in the 1990s and then dropped again in early 2000s. Today, the top 0.1 percent of American earners are netting half of all capital gains, according to Forbes.

That's costing a federal government a pretty penny. Tax cuts on these investments and other loopholes that benefit the super rich are costing the U.S. Treasury $11.6 million every hour, according to an October report from the National Priorities Project.

But if the wealthy get their way, they'll continue to pay less in taxes. The CBS/NYT poll found that nearly half of Americans making more than $100,000 think they're paying more than their "fair share" of income taxes. That's compared to 45 percent of Americans making between $50,000 and $100,000 and 32 percent making less than $50,000.

This most recent poll isn't the first to gauge American perspectives on taxing the wealthy. Nearly three-quarters of Americans said in a September Daily Kos poll that they support taxing households that make $1 million or more at the same or higher rate as middle-class households.

Also on HuffPost:

Comments

[l78lancer]

12:19 AM on 02/03/2012

Mitt is on the corporate side of the argument, but not on the winning side.

[Wayne Caswell]

11:44 AM on 02/02/2012

Yes.. Treat capital gains as ordinary income, but also raise the top tax rate for individuals ... to something like 80 percent, which is less than in the 1960's, and lower (or eliminate all) corporate taxes to encourage domestic investment. CEOs will have even more incentive to work hard and grow the company and profits, and in the process their companies will hire more workers. ... Now to take this farther, institute a financial transaction tax on securities and homes. It would discourage speculation but have little effect on long-term investments.

[Scurvydog74]

10:35 PM on 02/01/2012

Transferred $100,000,000 to his five children, tax free, from which they each receive $1,000,000 tax paid annually. This was done using legal shelters to avoid inheritance and gift taxes. Welcome to the 1% who make their own rules...

[aesop55]

11:00 PM on 02/01/2012

Flapping his war wings about Iran - and all the while hides his money in off shore tax havens. Who does he think will bear the burden of yet another war? Those poor schmucks who pay taxes and give up their children to be in the front lines. After all, his five sons are doing their patriotic duty - working so hard to get daddy elected President.

I am sure that Romneys first order of business would be to pass a repatriation bill so that he could bring his millions back to the U.S. sans penalties and/or taxes.

And why is it so bad to be like Europe? Isn't that where all of these uber rich people invest? In Switzerland, Ireland, etc?

[Philclock]

11:22 PM on 02/01/2012

Your class envy comment is exactly why we must re-instate the draft; EVERYBODY serves two years for the country, in the MILITARY, government controls EVERYTHING and tells you what to do, regardless of race, creed, etc.

[Timma]

10:03 PM on 02/01/2012

If more than 50% of Americans think capital gains should be taxed at at least the same rate as income then 50% of Americans shouldn't vote for Romney.

[Scurvydog74]

10:41 PM on 02/01/2012

Fifty percent of that fifty percent will still vote for Romney, to protect their guns, or to end abortion, or to prevent gay marriage, or to repeal Obamacare, or to kick gays out of the military, or to kick Iran's butt, or to privatize social security or for a dozen other right wing reasons.

[Timma]

10:21 AM on 02/02/2012

Too true...too sad...

[Mac88]

11:25 AM on 02/02/2012

Thats 25% of the whole and Romney loses!

[Rick4646]

09:42 PM on 02/01/2012

The GOP don't care about fair taxes... the Ryan bill they've voted for will increase our deficit, Romney's and Gingrich plans will increase our deficits by trillions over some years. All give more tax breaks for the rich and working class pay more. Obama proposed a budget that would cut our spending even more than their proposal but the GOP balked due to "revenue increases from the rich". The GOP don't care about our deficits anymore... they care about their big donors to line their pocketbooks thanks to Citizens United from the bought-out Supreme Court.

[Republicanistan]

10:31 PM on 02/01/2012

Bingo! We have a winner.

Nailed it.

[l78lancer]

12:20 AM on 02/03/2012

Great analysis.

[Scurvydog74]

09:23 PM on 02/01/2012

The other half will try to vote him into the white house so he can lower the same tax to zero...

[Tcolby6]

08:08 PM on 02/01/2012

You know I keep hearing about how the top 10 percent pay 70 percent of taxes but I never hear these people also saying that that same 10 percent hold 90 percent of the countries wealth sounds like a good deal if you ask me get 90 percent of all wealth and then give back 70 percent your still way ahead. I am so tired of being told that I should for some reason feel sorry for the rich.

[Grichde]

06:27 PM on 02/01/2012

So was there national poll I missed? I think he should pay what the tax codes say he owes.

Now Warren Buffet is the tax break KING. talks big about taxing the rich but takes all the tax breaks his team of accountants can find.

[Rick4646]

09:37 PM on 02/01/2012

Warren Buffet admits he's got too many tax breaks -- which is a hell of lot more honest than the swindlers of the GOP.

[Republicanistan]

10:33 PM on 02/01/2012

The National Debt cannot be solved on a voluntary basis. What Warren Buffet does is inconsequential. What the overall reform of these ludicrous breaks for the Richest among us will accomplish is significant.

[Mac88]

11:28 AM on 02/02/2012

Nice simple statement of reality! Thanks!
F&F

[jantomnidrah]

03:35 PM on 02/01/2012

Americans think Tim Geithner ought to pay his taxes, period. Tom Daschel should pay his taxes. Of course they are democrats and they do as they please

[blurredmolly]

03:40 PM on 02/01/2012

they paid plus a penalty. so what's your point? congratulations for being in the minority, ya sheep.

[jantomnidrah]

03:48 PM on 02/01/2012

Romney paid what he legally owed. Dead beats like you think the world owes you a living. Get a job and quit living off the government

[Scurvydog74]

10:48 PM on 02/01/2012

Luntz-lies and Fox false-facts. It's true that conservatives can't grasp complex information. Keep it simple whether it's true or not...

[ttsgw]

03:29 PM on 02/01/2012

But then he would not be as rich. A deadly sin according to conservative values.

[Philclock]

02:57 PM on 02/01/2012

Eat the rich, as P.J. O'Rourke wrote...that what the "progressive" movement's devolved into??

Guess so. And demanding hand-outs.

[blurredmolly]

03:41 PM on 02/01/2012

who demands handouts? all those unemployed republicans? it's amazing how many of you think the republican Party is fully employed. lol

[Philclock]

07:33 PM on 02/01/2012

I am an "unemployed" Republican; I am a sole proprietor.

So what was your problem again?

[brutalefrank]

02:32 PM on 02/01/2012

The americans were duped into voting for Income Tax because the promise was only the wealthy would pay taxes.

Romney has stated that he wants to do away with taxes on Capital Gains and dividends. If he does this, then he wont pay any taxes unless he received income from working. His income from working, as we've seen in his records, is a lot less than his investments.

Proxy Season is upon us. Read the income for the top officers and the directors. A good portion of their income comes from restricted shares or stock options. Under Romney, they don't pay taxes when exercising their options or selling shares that have vested.

Guess whose going to be stuck with the whole tax bill? The middle class. We will be slaving away while the wealthy investor reaps the benefit of access our government officials.

I have no issue with the wealthy being wealthy, I take issue that the tax burden is put upon the middle class.

[Philclock]

07:47 PM on 02/01/2012

EVERYBODY pays taxes; sales, property, estate; and MAYBE income, unless the million line maze of regulations offers a method for delaying, deferring or incurring losses and/or expenses that offset; and those losses and expenses will ALSO have been taxed!

Get the picture??

Now, what the heck is the "middle class", and what is this "tax burden" you're talking about?
Statistics show that your evil "wealthy", if it means those reporting the largest annual income (which is different from the definition of "wealth"), then for 2009 the top 10% of earners paid over 70% of all income tax revenues.

Now, you obviously being a person sensitive to "burdens", these people should be paying their "fair share", which is 10% of revenues.

Then the 90% who are entitled to an equal portion of Big Government hand-outs, should be paying their equal portion of revenues: 90%. That's "fair", isn't it? You get it, you pay for it.

I'm sure you agree.

[jeffrow63]

02:31 PM on 02/01/2012

Anyone who makes over a million a year should be happy to pay the same rate as someone who works for their money. Who the hell decided a man who works to feed his family should pay more than a man who invests and gets lucky? This is what is wrong with the economy - pure greed.

[Philclock]

07:53 PM on 02/01/2012

"...invests and gets lucky"; oh, so your kangaroo court ranks income differently, placing a Harrison Bergeron handicap on "investments", that the way it works?

Fascinating, I never thought of income streams as moral. You belong to the Church of the Prime Rate?

[aesop55]

11:07 PM on 02/01/2012

And who are you? Joe the Plumber?

[Scurvydog74]

11:00 PM on 02/01/2012

And a person who uses our infrastructure, airwaves, highways, sewers, water systems, airports, schools and stadiums and is protected by our military, police, firemen and air traffic controllers and is lucky enough to make a billion bucks in our economy off of our consumers needs to pay a significantly more progressive tax rate than a poor schmuck who works his butt off to make enough to eat. Flat tax is a rip off of the poor. Membership for the rich should be more than it is for the poor. They have a first-class ride on the backs of the citizens of this country. There is no such thing as a self-made rich man. Without society there would be no money to make...

[Lohan7]

01:51 PM on 02/01/2012

Who cares what the majority of Americans want. They are irrelevant to the tp/gop political process. The majority of Americans also want tax breaks for the wealthy to stop. Who cares? They are irrelevant to the tp/gop political process. Two people give Newt 10 million dollars for his campaign, and the SCOTUS is behind the law that allows it. Majority of Americans don't agree with it. Who cares. The majority is irrelevant to the current process in the tp/gop. Look forward to more in the future, if you don't use your vote responsibly.

[Philclock]

07:59 PM on 02/01/2012

What's a "tax break"? What is "wealth"? Who is "wealthy" and how do you determine if someone is so evil? Why do you demand retribution from people who have wealth, as opposed to those who don't? What about people who don't care about your wealth, are they entitled to it from somebody else? Why do you castigate two people who donate their money where they, not politicians and their cronies, see fit?

[donk970]

01:17 PM on 02/01/2012

So Republicans love to trot out the "class warfare is so unfair" card whenever talk turns to raising taxes on the rich. The thing is that we've been engaged in constant class warfare for as long as there've been humans on planet earth. Class warfare is a constant struggle for everyone. On one side there's the wealthy who have for most of history held the title of reigning champion; they are few in numbers but strong in economic and political power. On the other side are the proletariate who are week in economic and political power but have strength in numbers (and frequently have all the guns, knives, swords or whatever). Throughout history this class warfare has been waged between the wealthy and the poor. And quite regularly the wealthy have the upper hand and get to a point where they have so much and the poor have so little that the poor rebel and take up arms. Our own revolutionary war was one such example; our founding fathers got tired of being ground under the boot heal of the king and powerful corporations and they took up arms. If Republicans don't like the prol's fighting back they should consider reducing the causes of tension between the haves and have nots.

[Philclock]

08:01 PM on 02/01/2012

Class warfare is a gross violation of the equal protection clause IMHO; people should not suffer retribution or penalty for their wealth, as they do from politicians and their cronies under the Income Tax regulations.

[Scurvydog74]

11:03 PM on 02/01/2012

How wealthy would they be if they had been lucky enough to be born in China?