LeftofLeft
Diamond Member
- Oct 18, 2011
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Biden is talking about taxing dividend income as ordinary income as well.
All capital gains should be taxed as ordinary income. Money you worked for should not be taxed higher than investment income.
You are taking away from the incentive to invest. Capital gains on after-tax income that you have risked are going to cut into your return. Now, what happens when that money “sits” on the sidelines or otherwise seeks out tax-friendly investments such as overseas investments over public companies. How does that impact 401(k)’s and pensions? How does that impact public companies?
Check your class warfare at the door for a moment and think on a macro basis.
Does paying higher tax make an incentive not to work?
Labor creates wealth. Investment just moves it around.
If you don’t invest your money, what will you do with it? Stick it under a mattress?
I did not say money would not be invested. I said it would incentivize some to focus on tax-friendly investments first. Further, if I choose not to work because of taxes, who does that hurt more; myself or others? When I invest in companies yes I help myself but I also benefit other investors and the economy more than I would hurt them by not investing, not working.