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> I do not believe that there is any strong argument for treating capital gains differently from other other income as a matter of economic policy. The lower t
by white_devil 14y ago
> I do not believe that there is any strong argument for treating capital gains differently from other other income as a matter of economic policy.
The lower tax rate for dividends, for example, is a carrot dangling in front of a would-be enterpreneur. The idea of having less of the fruits of your labor forcefully taken away from you is very appealing.
Of course, the alternative is to take your intelligence to a friendlier tax climate, and be milked less by that other government. That carrot is a pretty good idea, because in this case, your original government gets nothing.
- altcognito 14y agoYou assume it is YOUR labor they are taking away from, when in reality, usually capital gains is interest and dividends, which -- is exactly the opposite of YOUR labor. That being said, lots of capital gains ends up getting paid on retirement funds etc... but as you can see, we're still a world away from incentivizing a would-be entrepreneur.
- white_devil 14y ago> You assume it is YOUR labor they are taking away from, when in reality, usually capital gains is interest and dividends, which -- is exactly the opposite of YOUR labor. You seem to be missing the part about being an enterpreneur? Imagine you've got your own one-man LLC/whatever. This would be a business entity that basically just amounts to you yourself, and relies on only your personal skills to make any money. I assume we don't need to take this any further.. ?