having taxes on earnings and not gains multiply taxes on products that have long manufacturing chains, or at least that's the theory. the result is that you ca

having taxes on earnings and not gains multiply taxes on products that have long manufacturing chains, or at least that's the theory. the result is that you can shift earnings and inflate costs to reduce gains dodging taxes. people should be able to claim expenses even for luxuries, but then nobody would have savings because those are capital inefficient. so there are two different drives that make the tax code asymmetrical, even in principle, before those schemes for dodging fair taxation.