WASHINGTON — Why do Mitt Romney and other wealthy investors pay lower taxes on the income they make from investments than they would if they earned their millions from wages? Because Congress, through the tax code, has long treated investment more favorably than labor, seeing it as an engine for economic growth that benefits everyone.
President Barack Obama and the Occupy Wall Street movement are challenging that value system, raising volatile election year issues of equity and fairness.
The U.S. has long had a progressive income tax, in which people who make more money pay taxes at a higher rate than those who make less. But for almost as long, the U.S. has taxed capital gains — the profit from selling an investment — at a lower rate than wages.
- 'I am Adam Lanza's Mother' author Liza Long...
- Jason Chaffetz: Mitt Romney is leaving door...
- Gamers use police hoax to lash out at opponents
- US wealth gap putting the squeeze on state...
- Feds chase treasure hunter turned fugitive
- The best (and worst) states when it comes to...
- Miss New York chosen as Miss America 2015
- Britain mourns aid worker slain by Islamic...
- Jason Chaffetz: Mitt Romney is leaving... 65
- Obama 'confident' of Islamic State... 19
- US wealth gap putting the squeeze on... 19
- US, Arab allies committed to fighting... 15
- Here's how U.S. churches are changing... 15
- Ted Cruz was booed off stage for... 14
- Utah's Gov. Gary Herbert eyes more... 11
- Americans link violence with Muslims,... 10