Quote:
Originally Posted by L-Pink
Re; capital gains ... You are being rewarded for both the risk taken in your investment as well as the fact you hold onto your investment for at least a year.
A risk is not taken in a regular paycheck job. A risk IS taken when you buy stocks or build a business property.
Conversely if you lose money on your investment you don't get to take that loss as a deduction. (except for a max of $3,000 a year)
There are valid reasons for a lower capital gain risk/investment tax rate.
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I think the millions who are on unemployment and/or have exhausted their benefits would respectfully disagree with you.
It's also weird how as a nation we value the almighty dollar more than we do our lives and bodies. I would argue that the person who is breaking their back earning money should pay less in taxes then the person transferring money out of their online banking account. The incentive would still be there to earn more so you could invest it. In fact, you could earn it faster by paying less in taxes before you finally make it in life that your passive income supports you.