I Might Get In Trouble For This
I’m so grateful for all of the donations. Every bit helps us get the word out, and to launch new and important outreach.
I might get in trouble for this opinion, but I actually think that investment should not be overly hampered by taxes.
What does that mean though? I think that a high capital gains tax makes people not want to invest in our economy. Capital gains tax is the tax people have to pay whenever they finally collect on their investment.
Anyone in Northe Eastern Ohio can download a trading app to their phone, and make their money work for them by investing in companies and ideas they care about. But when they go to take their money out, they’ll have to pay taxes on how much they made.
So if you contribute $100 to a business, and it eventually becomes really valuable, when you go to collect on your investment, you’ll be taxed based on how much that business has increased in value instead of that initial $100 investment. Investment is already a risk-reward situation, so by having a high capital gains tax, we’re making people not want to risk their money at all.
A high capital gains tax hardly matters for investment firms, which invest millions of dollars in billion-dollar companies and even write off whatever money they lose on their taxes.
But it is very important for people of average incomes.
I want to see an economy that is made easier to contribute to. I want people to be able to lift themselves up. A major part of lifting yourself up is making the decision to invest your income in something you see as valuable. A capital gains tax higher than 15% makes it too difficult to make that contribution.
I talked a few days ago about the value of trade schools in uplifting individuals and increasing community value. Well, think about how much value is lost if the taxes are so high, that there’s no point to investing in businesses because you’ll lose more than you gain.
Communities aren’t allowed to flourish, and we make it impossible for the middle class to make their wealth work for them.
Increasing capital gains tax is a direct assault on people who want to invest their money in what they care about, using readily accessible methods, like Robinhood or cryptocurrency. It disallows participation in the economy, which deprives communities of so much value.
If you agree that capital gains tax disincentivizes people from investments, please consider donating. Your continued support is essential to make change.