Publicola

Publicola: "1. Liberals who are looking for Sen. Maria Cantwell to lead on health care reform, should check this behind-the-scenes action out: Cantwell wants to impose a 1.45 percent tax on short-term capital gains to help fund Medicare, and she’s asked the Senate Joint Committee on Taxation to look at the budgeting details of her populist tax idea.

Currently, short-term capital gains—which includes profits made on day trades and short-sales by hedge funds—aren’t subject to Medicare taxes like a workers’ income is.

Cantwell’s office tells PubliCola: 'This is … about fairness. People who live on profits they make in day trades don’t contribute into the Medicare trust fund in the same way as a worker who earns wages.'"

What does this mean? I assume that these people do pay taxes on their net income? Why would one wanty to tax ojnly nthe up trades?