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> The lower tax rates on capital reflect the reality that you are paying taxes on the losses too No, you don't. You actually get a tax credit (e.g. you pay LE
by antisthenes 3y ago
> The lower tax rates on capital reflect the reality that you are paying taxes on the losses too
No, you don't.
You actually get a tax credit (e.g. you pay LESS taxes), if you incur certain types of capital losses.
- jandrewrogers 3y agoThe tax reduction against income for capital losses rounds to zero for all practical purposes. Long-term inflation losses are not deductible at all in the US even though they can often exceed notional returns.
- antisthenes 3y agoThat's not what your original comment said at all. You still haven't pointed out which capital losses get you taxed more. If you were referring to inflation, then why not just say that directly?