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Yes. > increase capital gains tax to equal income tax Is far easier said than done. For example, would you include the $250K capital gains deduction for sell
by mdorazio 5y ago
Yes.
> increase capital gains tax to equal income tax
Is far easier said than done. For example, would you include the $250K capital gains deduction for selling a home in that? Additionally, you're probably referring to raising long-term capital gains tax, but that has the side effect of disincentivizing long-term investment in favor of more short-term speculation.
- fighterpilot 5y agoHow would it disincentivize long term investment? In the US dividends are taxed at capital gains. I believe if a company makes $X and gives it out as a dividend it makes no difference to the investor whether the split between capital gains and corporate tax is 25/25 versus 43.75/0?
- deleted 5y ago[deleted]
- pentae 5y agoNot at all. Many countries already do this. For example, in Australia, capital gains is considered as income. It contributes to your progressive tax bracket the same way income does. For property, you do not pay capital gains tax when you sell your primary residence (that you live in) but you do on investment properties.