▲ | Retric 13 hours ago | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
> Business expenses Investment isn’t a business expense. > If all someone cared about was avoiding inflation they could just buy a stack of precious metals. Capital gains of precious metals “yield” drops you below inflation. > But we'd rather people build factories and develop new drugs and technologies than buy second private jets and third personal mansions. Someone needs to do that for your hypothetical 10% S&P gains. Giving handouts to wealthy people hardly discourages them using a private jet, just the opposite. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
▲ | AnthonyMouse 13 hours ago | parent [-] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
> Investment isn’t a business expense. Investment is the thing where you pay a business expense today expecting a return in the future. > Capital gains of precious metals “yield” drops you below inflation. This is a defect in the tax code. Taxing inflation as a capital gain is ridiculous. > Someone needs to do that for your hypothetical 10% S&P gains. And then those companies get a tax deduction. Or in many cases they do make those returns without doing those things, because a lot of those companies have high returns by buying off regulators to constrain competition and then charging high margins to captive customers, which is another thing we don't like to promote over the ones actually making productive investments. > Giving handouts to wealthy people hardly discourages them using a private jet, just the opposite. The tax isn't deferred on the money used for personal consumption. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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