3 ms·
I'm left of center politically, but the argument is that they put money they already have (and have paid taxes on) at risk by investing. They don't have to do t
by ojbyrne 14y ago
I'm left of center politically, but the argument is that they put money they already have (and have paid taxes on) at risk by investing. They don't have to do that, and by doing so, they help the economy overall. So the government provides incentives to risk money that they don't really need to.
Also middle class people can (and do) take advantage of the exact same mechanism.
- eli_gottlieb 14y agoBy that measure, isn't working putting your time at risk? After all, the company could collapse and go under any day, or, more likely, just lay you off any day! (I realize that equity instruments are far riskier than working, but debt instruments really aren't. With a bond or loan, the company owes you the money either way, just as it does when working for salary.) I see no reason that realized capital gains shouldn't just be treated as Yet Another Source of Income.