Section 4: Capital Gains and Investments
Q: How does the Zero-One-Hundred Tax Plan handle capital gains and investment income?

A: Capital gains are fully integrated into the simple 0/100 framework. The plan
eliminates special preferential tax brackets for Wall Street and treats investment
income exactly like regular earnings:

 Universal $100K Shield: Your first $100,000 of investment returns, dividends, or
capital gains is 100% tax-free.
 Curbs Short-Term Speculation: High-volume Wall Street speculators and
institutional investors pay a flat 25% on all gains above the $100,000 threshold.
 Total System Simplification: Merging long-term capital gains into the standard
0/100 tier eliminates pages of complex IRS forms and tracking requirements.

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Q7: How does the plan prevent Wall Street institutions and high-frequency traders from exploiting the system?
A: The plan shuts down financialized paper optimization. Short-term stock speculation held under 12 months is taxed at a fixed 25% Premium Rate. Furthermore, we are introducing a 0.5% Automated Financial Transaction Fee levied directly at the institutional clearing level on high-frequency algorithmic trades. This curbs dangerous market volatility and ensures Wall Street pays its fair share.

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Q8: Does this plan leave massive intergenerational wealth loopholes intact, like the "Step-Up in Basis"?
A: No, that loophole is completely abolished. Under the legacy system, heirs inherit multi-billion-dollar stock portfolios entirely tax-free. Under the "0/100 Rate" framework, inherited stock portfolios are subject to a flat tax on all amounts realized above the $100,000 baseline, ensuring absolute fairness across generations.