▲ | Retric 14 hours ago | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sign me up for some interest free loans then. Deferring capital gains is a huge windfall. Reinvesting money getting special treatment provides zero benefits to the economy. It falls under the fallacy that rich people can avoid investing their fortunes, inflation already makes that a nonstarter. The only result here is a handout. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
▲ | AnthonyMouse 13 hours ago | parent [-] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business expenses are tax deductions because business taxes are on profits and profits are calculated as revenue minus expenses. Taxing businesses on revenue rather than profits doesn't work because it would bankrupt every business with slim margins, which is most of them, while effectively cutting taxes for the ones with the thickest margins and creating a massive tax subsidy for vertical integration. > It falls under the fallacy that rich people can avoid investing their fortunes, inflation already makes that a nonstarter. If all someone cared about was avoiding inflation they could just buy a stack of precious metals. Moreover, the return from typical passive investments (e.g. S&P 500) significantly exceeds the rate of inflation. The preference for investment is as opposed to spending. If inflation is at 3% and someone is getting a 10% return from stocks, they can avoid real value loss while still spending up to 70% of the nominal profits. But we'd rather people build factories and develop new drugs and technologies than buy second private jets and third personal mansions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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