Quote:
Originally Posted by Paul T
idk if I agree with that….those making a capital investment in business or whatever it may be are putting money at risk, and (hopefully) adding jobs and adding to GDP along the way. The traditional argument is that LTCG tax is lower to encourage this investment. Now, you may have a point with regard to carried interest tax rates, which primarily benefit pure financial risk takers, and (generally) only kick in when the original investment $$ is recouped, along with some nominal return (hence, no more risk). I can see the argument why that should be taxed as ordinary income.
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it should at least be taxed as normal income.
again, the reason we see the "financialization" of the economy (ie, banking and accounting making more money than actually building things), is because of policies like this. its cheaper to make money with money, than it is to make money, by like, actually providing value ,and building things.