4 ms·
> highly regulated Regulated by them, so in practice not all that regulated
by krageon 5y ago
> highly regulated
Regulated by them, so in practice not all that regulated
- qeternity 5y agoPlease elaborate. Which regulations do you think are missing?
- fsflover 5y agoProbably this: https://news.ycombinator.com/item?id=13916811 https://news.ycombinator.com/item?id=13916811 https://news.ycombinator.com/item?id=4551285 https://news.ycombinator.com/item?id=4551285
- blatchcorn 5y agoI am not who you are asking but I want to chime in: the problem is not missing regulation, the problem is the rich decide on regulation and this regulation helps keep them rich. Specific examples: UK capital gains tax is lower than income taxes. This means if you are born in to a wealthy family and given a £1MM index fund, you will pay less yearly tax on your capital gains while chilling at home all day than someone with a £50K job working hard and contributing to society
- qeternity 5y ago> the problem is not missing regulation, the problem is the rich decide on regulation and this regulation helps keep them rich. Ok - so the rich have decided on regulations which are not the ones that are best for everyone. So…missing regulations? By definition, if we have the wrong regulations, then we’re missing the correct ones. Capital gains taxes are lower for a specific reason: the capital that was initially invested was already taxed. These laws benefit average people much more than they do the rich on a relative basis. Go model out a retirement portfolio that is taxed/compounded at ordinary rates vs capital gains rates. What people really want is higher capital gains for rich people which is fine, but you fundamentally misunderstand why they’re lower in the first place, which is double taxation.
- krageon 5y agoThe original capital is not taxed, capital gains is.
- qeternity 5y agoWhere do you think the original capital came from? When you buy shares of AAPL, you paid ordinary rates on income which you used to buy the shares.
- Craighead 5y agoDon't debate cryptists, they fundamentally incorrectly believe their imaginary money is better than other imaginary money for Reasons(tm) and you'll be met with nothing other than fallacies on their arguments.
- int_19h 5y agoAnd? You don't pay capital gains on that. You pay it on the increase relative to the original cost to you (which you payed with already-taxed money). Why shouldn't the increase be taxed same as any other income? Or more, actually, since it's not earned by productive labor?
- qeternity 5y agoCapital gains arises (on average) when a company grows and thus makes more money. Corporations pay corporate tax on those profits. Why should my share of those profits be taxed again at the individual level? Additionally, the higher the capital gains tax, the higher the expected returns have to be. Lower capital gains incentivizes riskier investment, which, within reason, is a net positive for society.
- int_19h 5y agoYour share of those profits is dividends, not any gains from increased value of the underlying asset. And I don't think we need to incentivize even more investment, given where things are at the moment. All it does is concentrate more market in the hands of the same people (who already have enough money to throw it around). It doesn't actually benefit the society as a whole, unless your metric for that is some mindlessly averaged metric like GDP.
- krageon 5y agoI'm not rich, so my opinion isn't relevant. That's the problem, not any specific detail (which your question is focusing on).
- qeternity 5y agoSelf fulfilling prophecy there.
- krageon 5y agoWhere is the self-fulfilling prophecy? Nowhere do I talk about my actions, I only talk about reality.
- qeternity 5y agoI may have misunderstood, but it sounded like you were saying because you're not rich, your opinion won't matter and so you won't opine. If all non-rich people took that view, then only rich people would be arguing about what the rules should be, and thus they will represent what rich people want. Self-fulfilling.
- int_19h 5y agoYou can argue all you want. But unless you have enough money to have enough politicians do your bidding, it's just words.
- EricDeb 5y agoHow about regulations so they can't avoid taxes? For every dollar invested in the IRS, $3-6 could be gained. Please elaborate on why you think it's okay for rich people to avoid taxes.
- qeternity 5y ago> Please elaborate on why you think it's okay for rich people to avoid taxes. Well, I absolutely don’t. Nice try though.
- andriesm 5y agoAvoid or illegally avoid obviously not. Optimise, of course. Who wouldn't. Now the question about "fairness" that rich people can structure to pay less tax than others - they don't - The top 1 percent in America earn 20 percent of the income but pay 40 percent of the tax.
- sumedh 5y agoYou dont go to jail when you are a big fish and break the law https://en.wikipedia.org/wiki/Steve_Cohen_(businessman) https://en.wikipedia.org/wiki/Steve_Cohen_(businessman)
- coryfklein 5y agoThe regulations that would make Warren Buffet pay more than an effective 0.1% tax rate are the first that comes to mind.
- deleted 5y ago[deleted]