3 ms·

There is a reason for this though. Money earned from labor is under contract and assured. Money earned from capital is earned from risking the loss of that capi

There is a reason for this though. Money earned from labor is under contract and assured. Money earned from capital is earned from risking the loss of that capital. Taxing it higher is the opposite of a solution as it will just make the corruption which allows rent buying, protectively burdensome regulations, and all the other tenants of crony capitalism all the more profitable. Busting up trusts and forcing more competition is the best way to lower profits on risk.

x5n1 11y ago
There is a difference between being able to write off losses, and the rate at which gains are taxed. Not to mention much of that capital in fact > 90% of it belongs to a very small number of people who are not risking a thing. If you know that 30% of your investment will pay off and that payoff will more than make up for your loss, and you invest maybe 5-10% of your assets on that. You are taking virtually no real risk whatsoever. Employment can be lost, discretionary income is limited, and usually the income is barely enough for you to get by after all the costs of things like retirement are accounted for.