Quote Originally Posted by MumblesBadly View Post
Quote Originally Posted by MumblesBadly View Post

Separate from the issue of Biden showing his age-related mental deterioration, it makes total sense to tax capital gains the same as earned income after adjusting capital gains for inflation.

P.S. In fact, because the unsystematic risk of financial assets can be diversified away, while that of human capital cannot, earned income should face a lower tax rate than inflation-adjusted capital gains of financial assets in order to put them in a comparable footing with respect to compensation for risk-bearing.
Jayjami: Total bs, not even worth a response.

Ignoring the issue of the ability of financial asset investors to diversify away unsystematic risk, please explain why inflation-adjusted capital gains should be taxed at a lower rate than earned income.
A 39% capital gains rate would discourage new investments in the stock market and more importantly, discourage movement of capital within the marketplace. Let’s say I owned IBM for 30 years, not happy with my returns, wanted to invest in a startup called Apple. If I had to pay 39% taxes, I would be less inclined to sell my IBM stock. Take macro economics 101 and get back to me if you don’t understand what a disaster this would be to the economy.