John Bogle, founder of Vanguard Group, speaks frankly about investment, speculation, taxation, & OWS...

The first index mutal fund founded by Bogle in 1975 manages almost 1.7 trillion in US fund assets.

I believe Bogle is one of the good guys. What he says makes absolute sense to me. A signal amidst the noise...

Check out what he has to say in this interview:

Q: What do you think about the ongoing discussion over tax fairness?

A: I believe the rich should pay more, but that's not a good platform for tax policy. What has gone wrong is that we've failed to recognize the difference between earned income and unearned income. Is it really fair for gamblers on Wall Street to pay a 15 percent rate when they make a winning investment, and an honest working person — a bricklayer, for example — may pay an equal or higher tax on their wages than a gambler? That's absolute absurdity. Rates may have to be changed, but we also need to look at what is taxed and how. Dividend income should be taxed at the same rate as ordinary income. As for capital gains, there ought to be some distinction between capital made by people who start businesses and contribute value to society, and capital made by gamblers on Wall Street, some of whom win. Earned capital income should carry the regular dividend rate, but capital income gains by trading, and particularly short- term trading, should pay a higher tax, even than the present ordinary income rate.

[link to www.usatoday.com]

Last Edited by Iconoclastics on 01/08/2012 07:43 AM