▲ | AnthonyMouse 13 hours ago | ||||||||||||||||||||||||||||||||||||||||||||||||||||
> 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
▲ | Retric 12 hours ago | parent [-] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
> Investment is the thing where you pay a business expense today expecting a return in the future. Investments like land aren’t necessarily consumed. You can reasonably deduct when an actual expense happens, but buying steel etc to be used next year doesn’t guarantee it is actually used rather than sold. > Taxing inflation as a capital gain is ridiculous. It’s a useful feature to discourage the exact wasteful approach you proposed. > The tax isn't deferred on the money used for personal consumption. Money is fungible, you hand me money to buy land and I can redirect money I would have spent to buy something else. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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