this post was submitted on 16 Apr 2024
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I think the idea is to encourage investment, since tax is only reduced on investments, which are supposed to create jobs, etc.
People can make capital gains in any tax bracket. So if 40k of your 80k income is gainz, the rate is reduced.
I dunno, it creates separate (but sorta proportional) tax brackets for a certain kind of income.
I buy the argument that we should encourage investments that create jobs, but I feel like a lot of investment categories (like real estate) don't create jobs.
Ahh, somewhere I got it in my head that capital gains were separate to income tax. That makes a lot more sense, thanks. Obviously I don't have a fully formed opinion on the matter as I was previously misinformed, but I agree, maybe there's a way to incentivize actual job creation while not rewarding unproductive gains.