“The bottom line: This isn't about how much people pay in taxes. It's about when they pay it. It would make more sense for the timing to match the receipt.” It

“The bottom line: This isn't about how much people pay in taxes. It's about when they pay it. It would make more sense for the timing to match the receipt.” It may be worse than that, and it may be about how much people pay in taxes. It’s the same logic as tax deferred retirement accounts. The federal government is either going to spend capital immediately (no gains) or they’re going to make very constrained gains. Which makes a ton of sense, for a government. But if you let wealth sit in the private sector for a period of time, you can let it grow at rates that vastly exceed, compounded especially, what the government can pull. The taxpayer will pay more taxes in raw dollars, but they’re going to end up with more money, both sides are winning.