4 ms·

What they need to do is make long term capital gains taxed as regular income. I wish I could defer payment from my employer by a year and be taxed 10% instead.

What they need to do is make long term capital gains taxed as regular income. I wish I could defer payment from my employer by a year and be taxed 10% instead. In fact, I'd do that exclusively. One year of pain and then 10% tax indefinitely.

ldjkfkdsjnv 4y ago
This will crash asset values, won't work. The whole system of debt and income is built off expected money, change the expectations and watch things break. And I get your retort, "let it break", but I am telling you, wont work
- endisneigh 4y ago
  Why exactly would it crash asset values?
  - stevedewald 4y ago
    Most investors care about after-tax returns, so increasing the tax rate on certain assets will decrease demand for them.
    - endisneigh 4y ago
      I agree that there will be decreased demand, but I don’t see any evidence of a crash. Equities would still out perform most other investments
  - sokoloff 4y ago
    Asset values can be thought of as a series of future cash flows, each discounted back to today (for uncertainty and inflation). Raising taxes on those future cash flows makes the assets less valuable today. The contemplated change isn’t this drastic, but imagine that you have an asset today that’s worth $X. Suddenly, overnight, everyone in the market for that asset learns that all future benefits from that asset will be permanently exactly half as valuable as they were yesterday. What would you expect the price of that asset to reconverge to? I’d expect it to converge to pretty close to half of $X.
- deleted 4y ago
  [deleted]
unstatusthequo 4y ago
How about don’t fuck individuals and make corporations pay a real tax?
- endisneigh 4y ago
  We should do both. It makes no sense that long term capital gains is taxed less than your regular income. This doesn't mean LTC gains should necessarily be increased to regular income. We could also simply lower regular income tax to be the same as LTC gains but that would only highlight the ridiculousness of the low LTC to begin with.

ldjkfkdsjnv 4y ago

This will crash asset values, won't work. The whole system of debt and income is built off expected money, change the expectations and watch things break. And I get your retort, "let it break", but I am telling you, wont work

endisneigh 4y ago
Why exactly would it crash asset values?
- stevedewald 4y ago
  Most investors care about after-tax returns, so increasing the tax rate on certain assets will decrease demand for them.
  - endisneigh 4y ago
    I agree that there will be decreased demand, but I don’t see any evidence of a crash. Equities would still out perform most other investments
- sokoloff 4y ago
  Asset values can be thought of as a series of future cash flows, each discounted back to today (for uncertainty and inflation). Raising taxes on those future cash flows makes the assets less valuable today. The contemplated change isn’t this drastic, but imagine that you have an asset today that’s worth $X. Suddenly, overnight, everyone in the market for that asset learns that all future benefits from that asset will be permanently exactly half as valuable as they were yesterday. What would you expect the price of that asset to reconverge to? I’d expect it to converge to pretty close to half of $X.
deleted 4y ago
[deleted]

unstatusthequo 4y ago

How about don’t fuck individuals and make corporations pay a real tax?

endisneigh 4y ago
We should do both. It makes no sense that long term capital gains is taxed less than your regular income. This doesn't mean LTC gains should necessarily be increased to regular income. We could also simply lower regular income tax to be the same as LTC gains but that would only highlight the ridiculousness of the low LTC to begin with.