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1/Let& #39;s have a little chat about capital gains taxes, shall we?
Biden wants to raise capital gains taxes for high-income people. This is a good move. https://www.bloomberg.com/opinion/articles/2021-04-29/dogecoin-is-one-reason-not-to-worry-about-capital-gains-taxes?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
Biden wants to raise capital gains taxes for high-income people. This is a good move. https://www.bloomberg.com/opinion/articles/2021-04-29/dogecoin-is-one-reason-not-to-worry-about-capital-gains-taxes?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
2/The first good thing about capital gains taxes -- as opposed to corporate taxes or payroll taxes or sales taxes -- is that you can make them very progressive, so they mostly tax high earners.
Biden wants to do exactly this.
Biden wants to do exactly this.
3/The second good thing about capital gains taxes is that they won& #39;t throw the country back into recession.
Capital gains taxes are macroeconomically safer than most other kinds of taxes.
Capital gains taxes are macroeconomically safer than most other kinds of taxes.
4/Opponents of capital gains taxes claim that they& #39;ll reduce financial investment.
But at a time when people are throwing mountains of cash at Dogecoin, I don& #39;t think a scarcity of financial capital is something we need to worry about. https://www.cnbc.com/2021/04/28/dogecoin-price-surges-after-tweets-from-elon-musk-and-mark-cuban.html">https://www.cnbc.com/2021/04/2...
But at a time when people are throwing mountains of cash at Dogecoin, I don& #39;t think a scarcity of financial capital is something we need to worry about. https://www.cnbc.com/2021/04/28/dogecoin-price-surges-after-tweets-from-elon-musk-and-mark-cuban.html">https://www.cnbc.com/2021/04/2...
5/People sometimes forget that capital gains taxes give investors a reason not to pull money *out* of the stock market.
This is probably one reason why capital gains tax hikes don& #39;t hurt stock prices. https://www.bloomberg.com/opinion/articles/2021-04-26/stow-your-outrage-about-a-capital-gains-tax-hike?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
This is probably one reason why capital gains tax hikes don& #39;t hurt stock prices. https://www.bloomberg.com/opinion/articles/2021-04-26/stow-your-outrage-about-a-capital-gains-tax-hike?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
6/And how about the impact on real business investment? There& #39;s evidence showing that dividend tax cuts (which are sort of like capital gains tax cuts) don& #39;t boost business investment.
https://eml.berkeley.edu/~yagan/DividendTax.pdf">https://eml.berkeley.edu/~yagan/Di...
https://eml.berkeley.edu/~yagan/DividendTax.pdf">https://eml.berkeley.edu/~yagan/Di...
7/In fact, capital gains taxes could even STABILIZE financial markets by discouraging over-trading, thus making them more attractive places for long-term patient capital to invest.
8/But capital gains taxes DO raise a lot of revenue.
A recent paper by @NatashaRSarin, @omzidar, et al. shows that these taxes are good at raising money: https://www.nber.org/papers/w28362 ">https://www.nber.org/papers/w2...
A recent paper by @NatashaRSarin, @omzidar, et al. shows that these taxes are good at raising money: https://www.nber.org/papers/w28362 ">https://www.nber.org/papers/w2...
9/And in the end, on top of all these economic benefits, capital gains taxes probably seem very fair to the American people.
Perceptions of fairness matter a lot!
Perceptions of fairness matter a lot!
10/So capital gains taxes have tons of advantages, and few measurable disadvantages.
Seems like a tax we should be using!
(end) https://www.bloomberg.com/opinion/articles/2021-04-29/dogecoin-is-one-reason-not-to-worry-about-capital-gains-taxes?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
Seems like a tax we should be using!
(end) https://www.bloomberg.com/opinion/articles/2021-04-29/dogecoin-is-one-reason-not-to-worry-about-capital-gains-taxes?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
