Posted 1 year ago on March 4, 2012, 5 p.m. EST by Hotcrocodile
This content is user submitted and not an official statement
How it should be done:
If you received the stock as a gift or were granted stock options for founding/leading a company, those should be subject to the regular income tax rates. If you are a retail investor who personally purchased shares (as a non-insider) in Company X via a brokerage to invest in the economy, those should be taxed at 5-15%.
Institutional trading firms and their "high frequency" transactions should be taxed at corporate income tax rates (i.e. up to 35%). Quite obviously they're not investing in the economy.
In the case of a very rich founder or CEO "diversifying his assets" like the Google guys did not too long ago, the initial cash out should be taxed at ordinary income tax rates before they purchase other assets.
Dividend income would depend on how the shares were initially obtained.
Of course, the republicans would never approve this.