3 ms·

Yes and we've seen the outcome - top 1% benefits too much, and results in too much concentration of wealth (along with other structural issues).

theodorton 9y ago
And the problem with raising taxes on capital gains will be investors moving their holdings to other countries to reduce their taxes. So long as the taxes on capital gains are kept at a comparable rate across countries, this isn't a problem.
- inthewoods 9y ago
  I don't think that's a given - there are plenty of countries with lower capital gain taxes, yet we don't see mass money moving to these countries. Source: https://taxfoundation.org/capital-gains-rate-country-2011-oecd/ https://taxfoundation.org/capital-gains-rate-country-2011-oe...
walshemj 9y ago
If there is no difference between income and capital taxation people wont invest in companies. And companies wont last with out access to capital trust me I have chaired share holder meetings caused by lack of capital
- mrb 9y ago
  «If there is no difference between income and capital taxation people wont invest in companies.» Nonsense. What alternatives do people have? Putting money in a lousy US savings account with a 1% annual interest rate? By comparison the US stock market's average annual return has been 7%. Hence even if income tax rate were the same as capital gains tax rate, the stock market would still give you returns 7× higher.
  - chibg10 9y ago
    The problem (started by GP, tbf) is that "investing in companies" is not a binary choice. A given amount of capital is economically more productive in riskier bets in most real-world cases (i.e. bets on tech advances drive the economy forward but are risky). However, higher investment taxes tilts the investment decision towards less risky (and less productive) investments. Think of investing in 1997 Amazon vs 1997 Walgreens: the more your upside is taxed, the more attractive Walgreens is going to look (in 1997)
- inthewoods 9y ago
  You lost me as soon as you said "trust me."
  - walshemj 9y ago
    so how many share holder meetings have you chaired trying to save a company from going bust?
    - inthewoods 9y ago
      You've got a large number of logical fallacies in your comment. Comparing your experience chairing shareholder meetings to tax policy is apples and oranges. Specifically, that because you've chaired a shareholder meeting, this somehow makes you an expert on the efficacy and outcome of changes to the tax code. The theory of "investment fleeing" due to capital gain tax increases is, frankly, not proven by the data. We've had an increase in the capital gains taxes under Obama (2014) - yet investment continued across private equity, venture and general investment.

theodorton 9y ago

And the problem with raising taxes on capital gains will be investors moving their holdings to other countries to reduce their taxes. So long as the taxes on capital gains are kept at a comparable rate across countries, this isn't a problem.

inthewoods 9y ago
I don't think that's a given - there are plenty of countries with lower capital gain taxes, yet we don't see mass money moving to these countries. Source: https://taxfoundation.org/capital-gains-rate-country-2011-oecd/ https://taxfoundation.org/capital-gains-rate-country-2011-oe...

walshemj 9y ago

If there is no difference between income and capital taxation people wont invest in companies. And companies wont last with out access to capital trust me I have chaired share holder meetings caused by lack of capital

mrb 9y ago
«If there is no difference between income and capital taxation people wont invest in companies.» Nonsense. What alternatives do people have? Putting money in a lousy US savings account with a 1% annual interest rate? By comparison the US stock market's average annual return has been 7%. Hence even if income tax rate were the same as capital gains tax rate, the stock market would still give you returns 7× higher.
- chibg10 9y ago
  The problem (started by GP, tbf) is that "investing in companies" is not a binary choice. A given amount of capital is economically more productive in riskier bets in most real-world cases (i.e. bets on tech advances drive the economy forward but are risky). However, higher investment taxes tilts the investment decision towards less risky (and less productive) investments. Think of investing in 1997 Amazon vs 1997 Walgreens: the more your upside is taxed, the more attractive Walgreens is going to look (in 1997)
inthewoods 9y ago
You lost me as soon as you said "trust me."
- walshemj 9y ago
  so how many share holder meetings have you chaired trying to save a company from going bust?
  - inthewoods 9y ago
    You've got a large number of logical fallacies in your comment. Comparing your experience chairing shareholder meetings to tax policy is apples and oranges. Specifically, that because you've chaired a shareholder meeting, this somehow makes you an expert on the efficacy and outcome of changes to the tax code. The theory of "investment fleeing" due to capital gain tax increases is, frankly, not proven by the data. We've had an increase in the capital gains taxes under Obama (2014) - yet investment continued across private equity, venture and general investment.