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While I agree here with you, it's not only the inheritance that saboatages this reward mechanism. It's also the capital gains. If we were to value hard work and
by levosmetalo 12y ago
While I agree here with you, it's not only the inheritance that saboatages this reward mechanism. It's also the capital gains. If we were to value hard work and real contribution, then income / salary tax should be much lover that capital gains tax. We should just value human effort more.
- armenarmen 12y agothe counter argument here is whether or not government wants spending rather than saving/investing to be encouraged. Higher taxes on capital gains i.e. investing discourages that, at least in principle (unavoidable pun)
- pjc50 12y agoCapital gains taxation steers investing from mere asset appreciation into actual productive investment - land improvement, machinery, building, etc. - which is usually granted various sorts of tax break.
- jessaustin 12y agoRather, capital gains tax steers investments away from the taxing jurisdiction and toward other jurisdictions. If the state wishes to maximize revenue, it must be patient, and wait for the wealthy to die before demanding its cut. Of course there are political reasons to do otherwise...