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In reply to the discussion: Note To Bloomberg: Like A Lot Of People, I Own A House. And Every Year I Have To Pay... [View all]TrollBuster9090
(5,953 posts)but I checked that. I see that the State capital gains tax is either 0%, 15%, or 20%, depending on income. That makes perfect sense to me as a true progressive capital gains tax. It encourages low income people to invest, and recognizes that wealth generates wealth (the 'snowball rolling down hill' analogy), and that higher incomes are taxed more. It recognizes that investment is a good thing, but also distributes the tax burden in a better way.
If I had my way, small businesses, with less than 5 employees wouldn't pay corporate taxes, but gigantic, multinational corporations would pay more corporate taxes. That would encourage wealthy plutocrats to invest more in small businesses, and encourage more start up companies, which are the grass-roots innovators. They generate both wealth and innovation.
(PS-in either case, it doesn't seem to have stopped the Californian economy dead in it's tracks. The Californian economy is a great model for others.)