4 ms·
All I'm trying to say is, it would seem logically and empirically, at least from your personal experience, that higher capital gains is associated with higher e
by an_opabinia 6y ago
All I'm trying to say is, it would seem logically and empirically, at least from your personal experience, that higher capital gains is associated with higher equity prices, because fewer people, including you, are selling.
Which means higher capital gains are, in an important sense, making you more money. That is totally and utterly surprising if our typical feelings about taxes are that they make us less wealthy. It is indeed possible that taxes make us more wealthy.
- WalterBright 6y agoSo holding a lower performing investment would make more money than moving to a higher performing one? I doubt it.
- nickpp 6y agoHigher capital gains tax would mean fewer people investing in equities, since their gains would be diminished by taxation. Fewer equity buyers means lower equity prices. People already in the markets must find a buyer to exit and realize those gains. There may be other factors I am missing, of course, but as Walt said: tax something if you want less of it.