I was not suggesting that the same money was taxed twice. Ok, well if you admit that then I guess we agree. It sure sounded like that's what you were saying to me.
I guess by this comment: "I guess I wanted to think of taxation as a process that my money only goes through once."
The only way I can make sense of this, aside from thinking that you were implying the same money went through taxation more than once... is that you are lumping all of your money into the category of "your money" and saying that if some of it gets taxed, then more money that you make shouldn't get taxed, especially if it had anything to do with the original money (like being in the same portfolio). It's hard for me to see what the point of that objection is, but I guess we both understand now what we were saying.
By the way, I was thinking about my statement that no matter what you do with your money after you earn it, it never gets taxed a second time... and I realize that it's sort of wrong. If you invest it, it doesn't get taxed again, but if you spend it then it does (sales tax). Although I think this is not quite double taxation either, because technically, it is the store who is selling the merchandise who has to pay sales tax on any items they sell. Most stores are just savy in that they pass on the tax immediately to the customer by adding it on to the receipt... presumably so that their customers realize how much the prices get inflated by tax and don't vote to raise them.
In reality, every transaction is taxed and because of supply and demand, both parties are going to effectively end up paying for some of that. Of course, sales tax is state not federal... I guess you could argue that state income tax is "double taxation" since it has already been taxed at the federal level.
Re: one poor person's point of view
Ok, well if you admit that then I guess we agree. It sure sounded like that's what you were saying to me.
I guess by this comment:
"I guess I wanted to think of taxation as a process that my money only goes through once."
The only way I can make sense of this, aside from thinking that you were implying the same money went through taxation more than once... is that you are lumping all of your money into the category of "your money" and saying that if some of it gets taxed, then more money that you make shouldn't get taxed, especially if it had anything to do with the original money (like being in the same portfolio). It's hard for me to see what the point of that objection is, but I guess we both understand now what we were saying.
By the way, I was thinking about my statement that no matter what you do with your money after you earn it, it never gets taxed a second time... and I realize that it's sort of wrong. If you invest it, it doesn't get taxed again, but if you spend it then it does (sales tax). Although I think this is not quite double taxation either, because technically, it is the store who is selling the merchandise who has to pay sales tax on any items they sell. Most stores are just savy in that they pass on the tax immediately to the customer by adding it on to the receipt... presumably so that their customers realize how much the prices get inflated by tax and don't vote to raise them.
In reality, every transaction is taxed and because of supply and demand, both parties are going to effectively end up paying for some of that. Of course, sales tax is state not federal... I guess you could argue that state income tax is "double taxation" since it has already been taxed at the federal level.