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1) Inflation effects salaries just as much as capital gains. Inflation does not discriminate between income types. 2) I pay capital gains tax rates on some of
by smutticus 15y ago
1) Inflation effects salaries just as much as capital gains. Inflation does not discriminate between income types.
2) I pay capital gains tax rates on some of my income but I'm not a corporation so I pay no corporate income tax. The 2 are only tangentially related.
- SamReidHughes 15y ago1) Inflation does discriminate between income types, in the following manner. If there's 5% annual inflation and somebody pays you a dollar for some work today, you're getting one dollar in whatever today's dollar is worth, and you're paying income taxes in whatever today's dollar is worth. If there's 5% annual inflation, and you invested $20 a year ago and today you sold your investment for $22, you've made $1 in whatever today's dollar is worth. But you're paying income taxes on $2. 2) Corporate income taxes decrease the amount of capital gains you have.