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There ought to be 2 tax rates: 10% if you risk your own money to build a business, and 50% if you pile up huge amounts risk free.
by SQL2219 10y ago
There ought to be 2 tax rates: 10% if you risk your own money to build a business, and 50% if you pile up huge amounts risk free.
- sfeng 10y agoWho does it serve? Using other peoples money might allow you to grow your business faster improving the economy. I might agree if you divide it by industry, oil and gas mining or finance has a higher rate.
- dv_dt 10y agoLong term capital gains tax is 15%. Interest on simpler accounts are taxed at a higher income rate. This is a very loose interpretation of what you're asking for, but with lots of side effects. Like people who trade their labor for income are taxed at a relatively high rate, while people who sit back and collect rent on capital "risking their money" are taxed at a fairly low rate. At high concentrations of capital, the "risk" is not so much a risk. (esp when the full force of the gov't is backing many aspects of the risk...)
- positr0n 10y agoHow would you define risk free investments? Buying Walmart stock and holding it for a decade? Buying a house and renting it out? Lobbying for preferential treatment for a business/sector you have a large stake in? The latter is obvious a problem, but if you can define that process legally then you could just outlaw it outright instead of trying to penalize it with taxes. Any investment I can imagine that is close to risk free is either already illegal or technically illegal but hard enough to define that people can skirt around the edges of the law.
- SQL2219 10y agoI define risk free as an employee with no skin in the game/no downside.