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In the US, a large part of this trend is due to the tax code. Examples: 1) in real estate, a "1031 transfer" allows the tax payer to not pay tax on the gain fr
by ghouse 9y ago
In the US, a large part of this trend is due to the tax code. Examples: 1) in real estate, a "1031 transfer" allows the tax payer to not pay tax on the gain from the sale of property so long as they purchase another piece of real estate. 2) Capital Gains tax rates are lower than Ordinary Income tax rates. So, the tax you pay on income derived from wealth is lower than the tax rate you pay on income derived from employment.
- starchild_3001 9y agoRe: 1) it only applies to your primary residence. It's by no means the way top %1 in wealth maintain or create their income. [Edit: I thought it does. But I'm not so sure anymore. Better scratch this comment] 2) I'd suggest examining double taxation. Corporations already pay taxes. It's unclear why an investor should pay additional taxes too on top of it, for the same profit.
- ghouse 9y ago1) That's inaccurate. From my own direct experience, it applies to any investment property. 2) You're making an argument to not tax dividends, not capital gains.