February 8, 2016

TAX WHAT YOU DON'T WANT, NOT WHAT YOU DO:

Marco Rubio wants to kill the capital gains tax. That's insane. (Jeff Spross, February 8, 2016, The Week)

[N]ow might be a good time to discuss that Rubio wants to do something that is, even by GOP standards, rather wild: He wants to scrap all taxes on interest, dividends, and capital gains from stocks.

This means he wants to get rid of all taxes on income from wealth ownership, and only tax income from labor -- i.e. wages.

His reasons are based on a simple philosophy held by many economists, including many liberal ones: Our tax system should encourage investment. Dividends and capital gains and interest are income people earn on stocks and bonds that they own. Stocks and bonds, in turn, are investment: When they're bought, that money allows business and individuals to create new capital, like office space and computers and tractors and roads. It enlarges the economy's total capacity to do productive stuff.

why would you even want to punish people for making money? Or for saving/investing it?  Tax them when they spend it.  

Posted by at February 8, 2016 5:51 PM

  

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