Name one Flat Tax scamnario that taxes capital gains as income
Here I will give you a list of proponents that have proposed it
-Malcom Forbes
-Newt Gingrich
-Herman Cain
-Dick Armey
MY constitutionally based flat tax system does so, to whit:
every incorporated agency pays a flat tax on their gross receipts with no exemptions, deductions or deferrals and no allowances for depreciation etc. to the state in which they do business, the rate of the tax would be set annually by the individual states based on the budget expenses set by the congress for constitutionally allowed programs and services, which the congress would then have to live within. no more debt based expenditures. this budget would then be apportioned to the states as their share of the federal budget which they must then collect from the corporate interests within that state, or from the people of the state, or most likely a mix of the two.
corporations which wish to do business nationally or internatrionally would incorporate through te federal government, with a flat tax rate with no deductions or deferrals based on their gross receipts which would then be subtracted from the budget before apportionment to the states, plus a small extra dip (1-2%) which would be dumped directly into the TREASURY (as a saving account against war, disaster or economic downturn) and stored in the form of gold, silver or rock solid bonds from states or municipalities just to keep the money moving.
hence every corporate interest would pay the taxes BEFORE paying out dividends to investors (people) while dividends paid out to other corporate investors or from the subsidiaries within the individual states, would be taxed again as income to said second corporation this would result in corporations doing ONE thing, not nesting subsidiaries within subsidiaries till the ownership of the business is impossible to untangle. further, to engage in business within a state the corporation must be incorporated within that state, reside within the state, and pay the taxes to that state, or if they wish to do business in many states or internationally they would also face the federal income tax
PEOPLE would not be taxed on income at all save by the states (or not if the state so desires), and the IRS and SEC would become a single economic watchdog ensuring that corporate interests do not cheat, defraud or conceal income from the federal tax man.
i know you dont want to hear it but capital gains are already taxed as the income from the corporate interest before being disbursed to investors. the capital gains tax is a second tier of taxation on an already taxed transaction. like having a sales tax, AND a sellers tax both. only the guy at the end of the chain pays the taxes, so currently capital gains are taxed twice, once as the company's money, and once as the investors.
or to put it another way, you would be taxed for putting money into your pocket, and for taking it out.
the current system is designed to gouge the rich, and pauper the poor for the benefit of the merchant class in the middle.