Thread

1. DataDive · 1789652120 · focus · HN ↗

   What happens if some of those tax the unrealized gains bills pass in some country where they have obligations?

   They would have to either pay the tax on gains or write off losses.

   1. philipallstar · 1789652603 · focus · HN ↗

      Surely only an absolute lunatic would pass that sort of law. And by then it's too late, because it's Socialism with extra steps.

      1. sebzim4500 · 1789652770 · focus · HN ↗

         Doesn't Switzerland do this instead of capital gains? Makes sense IMO, much better to tax wealth than discourage transactions.

         1. spacebanana7 · 1789655095 · focus · HN ↗

            Taxing capital assets by taking large portions of their value destroys value by forcing liquidity events. Think forcing sales of farms, factories and domain names.

            I much prefer land value taxes (and similar taxes on non capital wealth like jewellery) and leisure taxes (ideally taxing people for every hour they don't work). Of course these are difficult to administer in practice, but British business rates and US overtime tax discounts effectively approximate this.

            1. bitmasher9 · 1789656410 · focus · HN ↗

               The idea of taxing people for not working an hour sounds incredibly dystopian.

               1. overtone1000 · 1789657752 · focus · HN ↗

                  I had the same reaction. It also seems easy to pull apart. What about disabled people who are unable to work?

                  I think something more like "investment income should be taxed at a higher rate than income earned through labor," accomplishes similar goals but is more intuitive and less problematic.

                  1. philipallstar · 1789659854 · focus · HN ↗

                     If your goal is to reduce investment that creates jobs for labour, then you should do that.

                     1. overtone1000 · 1789665812 · focus · HN ↗

                        This is a false dichotomy. Laborers could just as easily invest in job-creating endeavors as passive income earners. All taxes cause economic drag, not _just_ business and investment income taxes. The economy includes every participant, and laborers are not an externality.

                        1. philipallstar · 1789730520 · focus · HN ↗

                           I'm sorry, I don't follow. Yes, people who are labourers could also somehow creating funding pools that are big enough to start companies, but so what? That doesn't negate the fact that they will be disincentivised to do so by a tax on investment income.

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