Quote:
Originally Posted by SuckOnThis
Uh hate to break it to you, but capital gains is taxed at a lower rate than regular income even before Bushs tax cuts, and this is why you claim you wouldnt invest in 'your business'? 
Please give an example how you would pay capital gains tax in the first place by investing in your own business. |
What does "income" and "capital gains" have to do with each other? Income tax does not penalize great investment decisions which is what capital gains taxes do specifically.
When rewards are bigger, people take bigger risks. When rewards are smaller, people take smaller risks. I don't know how it could be simplified any further. Capital gains plays a major role in depressing real estate investment. But hey, why does the US need the housing market to recover and grow? That can't possibly benefit anyone or increase tax revenues to the government.