Quote:
Originally Posted by zimmy
Do you own a business? A person who opens a business takes a huge risk. A person who fishes for a living takes a huge risk. A barber takes a risk. A contractor, plug builder, etc etc. In fact, the risk to them might be infinitely higher than for a person who has 100,000,000 net worth and invest 50 million. They can afford that risk. The argument that investment through the market warrants different rates than earned income is arguable.
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"Do you own a business?"
Yes, i am part owner of a gold refinery. I don't see the point of that. If i lose the miney I put up, I get to deduct it from my taxable income. That's tax policy that encourages entrepeneurs, and it's smart policy.
"They can afford that risk."
Society cannot afford to make investing not seem like a good gamble. We need ro encourage investors, because businesses need capital to function.
Every decision as to whether or not to invest in a company depends upon a cost benefit analysis, or a comparison of risk versus reward. If you hike the capital gains tax rate, every single investment makes less mathematical sense to take a chance on.
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