3 ms·
if capital gains were taxed like income (ie, at a higher rate), people would invest less money. is this good?
by leetcrew 7y ago
if capital gains were taxed like income (ie, at a higher rate), people would invest less money. is this good?
- Pfhreak 7y agoWould they? I'm not sure that's true. If they still beat out the rate on my savings account, I'd still invest. The super wealthy would just end up paying a bit more, but it's likely they'd remain super wealthy.
- skybrian 7y agoMaybe? If the alternative to investment is spending the money, this boosts the economy. Also, given the eagerness of investors to gamble on unicorns, it's unclear that there is any shortage of investment money. Occasionally there's talk of a global savings glut.
- scarface74 7y agoWhy wouldn’t spending money boost the economy? Besides when you “invest” in a publicly traded company, unless it’s at the IPO or another stock offering by the company, the company never sees the money and they aren’t getting any money from you.
- skybrian 7y agoYes, I agree that more spending boosts the economy. (Sorry about the unclear phrasing.)
- bduerst 7y agoThis was debunked with the cap gains tax breaks made in the early 2000s. Lowering the tax rate did not stimulate more investing activity, just cut government revenue.