AdamT
DP Veteran
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- Jul 26, 2011
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You know well that there have been dozens of posts explaining why LONG term capital gains are taxed less
those include
1) the risk element
2) to stimulate investment
3) the diminishing of the investment due to inflation
and it is why SHORT TERM capital gains are taxed the same as earned income
what is pathetic is people who are mad that some can avoid having earned income while having no problem with so many voters having no income tax
1) Risk is part of investing. It isn't a justification for preferential treatment by the government. Why should the taxpayers subsidize your risky behavior? Has this sort of thing ever come back to bite us on the ass?
2) There is no convincing evidence that lower LTCG rates spur investment.
3) Diminishing investment due to inflation is one reason why people invest in stocks, as opposed to holding cash. It isn't a justification for a preferential tax rate.