re: #392 Rightwingconspirator

The tax rate bias if you want to call it that is lower for cap gains, but I refer to the emotional bias. Plus, the way we start to even have cap gains is by saving already heavily taxed salary cash. If we call cap gains tax rates light, it’s fair to call salary tax rates heavy.

Perhaps the lower cap gains rate is healthy just because it encourages us to invest in our economy via stocks and bonds. That is not just a good thing, it is essential. Like anything it can be abused, which should be regulated and called out.

You’re right about the emotional bias. Your argument about the rate being a good thing is usually used. However, it’s not essential. Or rather, a special rate to encourage it is not essential. The people who can afford to invest significantly do so because investment brings more wealth than savings. The people who can’t afford to invest wouldn’t do so if the tax rate was zero.

The net effect of a lower capital gains tax is to exacerbate the wealth divide. Those who have are rewarded with lower burdens.