Quote:
Originally Posted by AVN Theo
You need to have a smaller tax on investments to get money flow in the economy, nothing wrong with that
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No. You don't.
If you had 10M and investments were taxed at the same rate as any other income, what would you do with it? Would you put it in your mattress? Buy a CD for 1%? Open a savings account for even less return?
If you decided instead to start a business with the money you would actually create jobs. Growing businesses always create jobs, stock investments usually do not. The stock market has nothing to do with P/E ratios, providing capital to businesses that need it, etc... That era is long gone. People buying Apple aren't doing it to help fund expansion, it has become little more than a sanctioned online casino. The lower rates attract unwitting 'day traders' looking to make a buck against the odds of high frequency momentum traders with brokerage seats and the ability to make massive moves after hours or before IPOs. They also help financiers pay a much lower tax rate... And financiers have powerful lobbyists to keep it that way. Tax it just like any other income and people will still invest, or they will put the money to other uses that fuel the economy more than most personal trading accounts ever would.