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People already have incentive to invest, inflation. I don't really buy the argument that capital gains taxes encourage investment, because without them, you'd s
by unlinked_dll 7y ago
People already have incentive to invest, inflation. I don't really buy the argument that capital gains taxes encourage investment, because without them, you'd still be stupid not to put your money to work.
- logicchains 7y agoIncentive isn't a yes or no thing, it's a scale. The more you tax saving relative to spending, the more you encourage people to spend. Mathematically, if we view save vs spend as a choice between consuming now vs consuming later, with some fixed time discounting function, then for any given save vs spend decision, taxing one increases the relative payoff of the other.