3 ms·
Also having capitol gains taxed at a lower rate than income is regressive. Rich people aren't rich because they work. They're rich because they have money to in
by adgjlsfhk1 5y ago
Also having capitol gains taxed at a lower rate than income is regressive. Rich people aren't rich because they work. They're rich because they have money to invest. Our tax system should benefit people who work for a living over people that just pay other people to turn their money into more money.
- bingohbangoh 5y agoYou're taxed when you earn the money already. Taxing again at the point you deploy it is double taxation. Many countries don't tax capital gains at all because of this fact. Moreover, you want people to deploy their capital in the economy. Hiking taxes on capital gains would massively disincentivize people. Unlike other taxes, capital deployment is a risk based economic activity: if you raise taxes, people will be less inclined to invest it on risky ventures as opposed to keeping it in very safe assets (e.g. bank accounts or real estate).