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First thing's first, taxes on capital gains should be much higher, and always higher than taxes on wages. Second, loans require repayment. Even if the bank ac

First thing's first, taxes on capital gains should be much higher, and always higher than taxes on wages. Second, loans require repayment. Even if the bank accepts your stock directly as payment, there's a taxable transaction. I don't understand how loans evade taxation. Third, marginal tax rates used to be MUCH higher than they are today. Example from USA Today: "For married people filing jointly in 1953, for example, any income above $200,000 was taxed at 90%, above $300,000 at 91%, and above $400,000 at 92%."

ad404b8a372f2b9 3y ago
Interesting, I didn't know the rates used to be that high. I don't understand fully how loans evade taxation either. What I've read is that it's a combination of: - They can be carried forward into other loans. - They don't repay them, they only pay the interests. - They aren't close in amount to their actual net-worth. So most of the money they own is not liquid and not subject to those taxes. Unless we're talking about a wealth tax, which I'd be interested in seeing an argument for as well.