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(not sure why the downvotes, I just upvoted you - this is a solid question) I suppose because property values are considered to be more stable than, say, GameS
by finnh 5y ago
(not sure why the downvotes, I just upvoted you - this is a solid question)
I suppose because property values are considered to be more stable than, say, GameStock puts. But you raise a good point, that what we're talking about (really) is a "how we should tax _wealth_" vs "how should we tax _capital gains_".
- ncallaway 5y agoI feel like "capital gains" occupy a strange middle-ground between income and wealth. Capital gains clearly represent a change in your wealth, and are somewhat "income-like". But they also are a persistent thing that you are in control of until the time of sale, and are somewhat "property-like". It seems plausible that we could come up with a reasonable-scheme for capital gains taxes that manages to accommodate both properties, but I think it'd take a fair amount of consideration to make sure that there aren't nasty edge cases, and the benefits outweigh the additional accounting.
- TimPC 5y agoCapital gains aren't a strange middle ground. They are the best attempt to have an income system work: they allow the taxation of income from money. A system that taxes only income from labour is grossly unfair to the poor. A system that taxes all wealth is overly bureaucratic and deeply invasive.