I can’t find the clip anywhere – but I was once on Tucker Carlson’s Fox News Channel show.

Tucker – who is a genuinely good and nice guy – had me on to debate why rich people pay a lower tax rate than poor people.

Which occurs because rich people don’t pay the higher income tax rate.  Because they set themselves up – to not make any income.  They set up their remuneration – so as to pay the lower capital gains rate.

Tucker wanted to raise the cap gains rate.  I began my response with something like “We can leave this segment arm-in-arm.  By agreeing to lower the income tax rate – to match the cap gains rate.”

I explained that government is a shotgun – not a rifle.  Raising the cap gains rate – would inflict a LOT of non-rich-people collateral damage.  Like tens of millions of retirees cashing out stocks, selling their homes, etc – in order to, you know, live.

Oh: And the cap gains tax – isn’t indexed to inflation.  Which is yet another advantage government gets – from inflating its money.  Beyond just diluting the tens of trillions of dollars of debt they owe?  They get to collect a LOT more on the non-indexed cap gains tax.

So retirees are paying a cap gains tax – on a house they bought in 1958.  And was priced for 1958 – in 1958 dollars.  $1 in 1958 – is $10.91 today.  An inflated “increase” – of 991.01%. (more…)