5 ms·

> People rich enough to be included in "tax the rich" mostly get their money from capital gains OK, so we are talking now not about income tax, but about capit

> People rich enough to be included in "tax the rich" mostly get their money from capital gains OK, so we are talking now not about income tax, but about capital gains tax? That's quite a different topic. But, also, no, capital gains tax should not be increased. Because you cannot become rich by investing into index. You become rich by founding a company while working 16 hours a day and getting a large share of it. And after many years of that work with lots of failures and a lot of personal losses, you become rich. Some people try this path, many fail. If you tell them you can continue doing that, but in the end you will get slightly more than a regular dude working 8/5, they will think, why bother. Alternatively, you can become more rich by investing your personal money into something risky (like buy a share of your friend garage startup). Again, if cap gains tax will eat your gains, you won't do it next time. Why bother, better buy a condo and wait for it to grow. Increase cap gains tax, and you won't have new trillion cap companies in the US.

ineptech 5y ago
This is kind of all over the place and riddled with non-sequiters; by way of response I will simply point out that we could raise the capital gains rate 5% tomorrow, and it would still be lower than it was when Amazon and Google were founded.
- asteroidbelt 5y ago
  Yes, increase by 5 percentage points (I guess you meant pp, not 5%) will hurt a litte, and will increase income insignificantly. But if capital gains is raised to 43% as proposed by Biden, it will be higher than when it was when Amazon and Google were founded. And if it is raised to 90% for gains above 10M as certain people including here on HN proposed, it will be way way higher than when Amazon and Google was founded. Please show me where I'm "non-sequiter".
- opo 5y ago
  >This is kind of all over the place and riddled with non-sequiters; Blanket dismissals aren't helpful. As the guidelines state: "Please don't post shallow dismissals, especially of other people's work. A good critical comment teaches us something." >I will simply point out that we could raise the capital gains rate 5% tomorrow, and it would still be lower than it was when Amazon and Google were founded. Well Google was founded in 1998. In 1998 the long term capital gains rates were 20% for those in the highest bracket and if held for over 5 years went down to 18%. Today's long term rates are 23.8% for those in the highest bracket. Where are you getting your numbers? https://taxfoundation.org/federal-capital-gains-tax-rates-1988-2013/ https://taxfoundation.org/federal-capital-gains-tax-rates-19...
  - ineptech 5y ago
    > Where are you getting your numbers? I was under the impression that the Google founders started in January of '96, when the rate was 28%, and '98 was when they legally incorporated. Perhaps they originally intended Google to be a non-profit, and only changed their minds in reaction to the rate cut in 1997? > A good critical comment teaches us something. Interesting complaint. What was yours intended to teach me? Other than your nitpick, you forgot to include the part where you actually disagree with my point (that asteroidbelt's dire prediction that entrepreneurs would have no desire to launch ambitious commercial ventures if we raise the capital gains rate is not supported by recent history).
    - robertlagrant 5y ago
      It doesn't have to refute your original point to teach something.

ineptech 5y ago

This is kind of all over the place and riddled with non-sequiters; by way of response I will simply point out that we could raise the capital gains rate 5% tomorrow, and it would still be lower than it was when Amazon and Google were founded.

asteroidbelt 5y ago
Yes, increase by 5 percentage points (I guess you meant pp, not 5%) will hurt a litte, and will increase income insignificantly. But if capital gains is raised to 43% as proposed by Biden, it will be higher than when it was when Amazon and Google were founded. And if it is raised to 90% for gains above 10M as certain people including here on HN proposed, it will be way way higher than when Amazon and Google was founded. Please show me where I'm "non-sequiter".
opo 5y ago
>This is kind of all over the place and riddled with non-sequiters; Blanket dismissals aren't helpful. As the guidelines state: "Please don't post shallow dismissals, especially of other people's work. A good critical comment teaches us something." >I will simply point out that we could raise the capital gains rate 5% tomorrow, and it would still be lower than it was when Amazon and Google were founded. Well Google was founded in 1998. In 1998 the long term capital gains rates were 20% for those in the highest bracket and if held for over 5 years went down to 18%. Today's long term rates are 23.8% for those in the highest bracket. Where are you getting your numbers? https://taxfoundation.org/federal-capital-gains-tax-rates-1988-2013/ https://taxfoundation.org/federal-capital-gains-tax-rates-19...
- ineptech 5y ago
  > Where are you getting your numbers? I was under the impression that the Google founders started in January of '96, when the rate was 28%, and '98 was when they legally incorporated. Perhaps they originally intended Google to be a non-profit, and only changed their minds in reaction to the rate cut in 1997? > A good critical comment teaches us something. Interesting complaint. What was yours intended to teach me? Other than your nitpick, you forgot to include the part where you actually disagree with my point (that asteroidbelt's dire prediction that entrepreneurs would have no desire to launch ambitious commercial ventures if we raise the capital gains rate is not supported by recent history).
  - robertlagrant 5y ago
    It doesn't have to refute your original point to teach something.