3 ms·
It would appear that the relative tax inefficiency of dividends over buy backs (and lack of wealth taxes) has fundamentally messed up the business world. Alas,
by riffraff 5mo ago
It would appear that the relative tax inefficiency of dividends over buy backs (and lack of wealth taxes) has fundamentally messed up the business world.
Alas, I don't see that likely to change.
- bandrami 5mo agoAlong with the "borrow tax-free against unrealized equities gains" hack.
- nh23423fefe 5mo agoTaking on leverage risk and paying interest is a "hack"?
- bandrami 5mo agoYes, because it's income and we all know it's income and it should be taxed
- nh23423fefe 5mo agoso you want to tax home equity loans or 401k promissory notes?
- plorkyeran 5mo ago401ks and loans for houses are already things which have specific tax carveouts, so the idea that those would be exceptions even if secured loans in general were taxed doesn't seem like a particularly bold idea.
- bandrami 5mo agoYes to both, though I'm willing to listen to a carveout for HELs on primary residences (particularly if they're for improvements)
- mike_hearn 5mo agoWhat's the proposed link here? Wealth taxes don't seem to incentivize the creation of profit. If anything it's the reverse: business owners are incentivized to keep ploughing profits back into the company because it reduces the apparent value of the firm if it's not profitable.