Capital gains incomes tax discount is unjustified
A significant and clear benefit to our economy MIGHT possibly justify additional federal intervention within our free enterprise system. This tax provision is favorable to a sub-class of capital gains incomes; it does not clearly or directly favor or induce incomes be invested or reinvested rather than spent for other purposes.
If the reduced tax rate was the determining factor as to investment allocations, theres no reason to suppose that tax treatment favoring capital gains induced superior economic decisions.
Investors choices dependent upon their determining the probability and rewards for success is basic to the concept of a free enterprise market.
If governments tax policies are enticing more investment in some classification of enterprises, its logical to believe that less favored enterprises are less able to attract investment capital. If thats the case, government would be replacing Adam Smiths described open markets unseen clever hand with governments clumsy thumb on the scale.
Thats completely contrary to the concept of free enterprise and the wisdom of the market.
When the determining factor that induced a sale is due to tax policy, the question of a sales benefit to our nations economy is questionable. When selling entire or portion of enterprises or any other assets are marginal decisions based upon tax considerations, the retaining, nurturing and re-investment into the enterprise may be of equal or greater benefit to our nation. Within such cases, a favorable tax treatment (at very least) denies us of federal revenue and is equally likely to be of net detriment rather than advantageous to our nations best interests.
In cases where the determining factor to sell was not due to a tax policy, the sale would have been transacted regardless (of that tax policy). Profits due to transfers of wealth in themselves are of no greater or less than any other income sources economic benefit to our nation; income is income.
It is politically unfeasible to eliminate the tax discount for profits due to sales of residences not rolled into the purchase of another home but the amounts could be limited to the median price of a U.S. private residence when the laws passed. That capped amount could be thereafter annually adjusted to the U.S. dollars purchasing power. Other than that the unjustified tax reduction favoring capital gains profits should be eliminated.
Respectfully, Supposn
A significant and clear benefit to our economy MIGHT possibly justify additional federal intervention within our free enterprise system. This tax provision is favorable to a sub-class of capital gains incomes; it does not clearly or directly favor or induce incomes be invested or reinvested rather than spent for other purposes.
If the reduced tax rate was the determining factor as to investment allocations, theres no reason to suppose that tax treatment favoring capital gains induced superior economic decisions.
Investors choices dependent upon their determining the probability and rewards for success is basic to the concept of a free enterprise market.
If governments tax policies are enticing more investment in some classification of enterprises, its logical to believe that less favored enterprises are less able to attract investment capital. If thats the case, government would be replacing Adam Smiths described open markets unseen clever hand with governments clumsy thumb on the scale.
Thats completely contrary to the concept of free enterprise and the wisdom of the market.
When the determining factor that induced a sale is due to tax policy, the question of a sales benefit to our nations economy is questionable. When selling entire or portion of enterprises or any other assets are marginal decisions based upon tax considerations, the retaining, nurturing and re-investment into the enterprise may be of equal or greater benefit to our nation. Within such cases, a favorable tax treatment (at very least) denies us of federal revenue and is equally likely to be of net detriment rather than advantageous to our nations best interests.
In cases where the determining factor to sell was not due to a tax policy, the sale would have been transacted regardless (of that tax policy). Profits due to transfers of wealth in themselves are of no greater or less than any other income sources economic benefit to our nation; income is income.
It is politically unfeasible to eliminate the tax discount for profits due to sales of residences not rolled into the purchase of another home but the amounts could be limited to the median price of a U.S. private residence when the laws passed. That capped amount could be thereafter annually adjusted to the U.S. dollars purchasing power. Other than that the unjustified tax reduction favoring capital gains profits should be eliminated.
Respectfully, Supposn
