06-21-2015, 07:46 PM
I wish dividend tax (which is double taxation) would either be completely eliminated after a certain number of years of holding, or become progressively less as the holding period increases. For example:
- Years 1-5 are taxed at 15%
- Years 6-10 be are taxed at 10%
- After the 10th year, taxes are only 5%
It would provide an incentive to invest for the long haul, instead of just a quarter by quarter basis. I argue that providing a long-term incentive in equity markets will have a positive effect on the overall economy.
Another positive effect on the overall economy would be the supply-side effect. Although, I don't draw any political lines, I believe there is some truth to the supply-side argument in reducing capital gains and dividend taxes. When JFK cut capital gains taxes, tax revenues increased. When Bill Clinton cut capital gains taxes, tax revenues increased. When G.W. Bush cut capital gains taxes, tax revenues increased. Noticing a trend? When you supply an incentive to invest, people really do invest more, and the more investment, the more return, and the more return the more taxes collected.
This policy may increase income inequality, but it will also eliminate barriers to wealth for the poor and middle class. Speaking personally, this would help me move into a better financial condition, but not make me rich by any means.
Lastly, it is a lucrative policy for dgi folks.
Booyah! Flame away.
- Years 1-5 are taxed at 15%
- Years 6-10 be are taxed at 10%
- After the 10th year, taxes are only 5%
It would provide an incentive to invest for the long haul, instead of just a quarter by quarter basis. I argue that providing a long-term incentive in equity markets will have a positive effect on the overall economy.
Another positive effect on the overall economy would be the supply-side effect. Although, I don't draw any political lines, I believe there is some truth to the supply-side argument in reducing capital gains and dividend taxes. When JFK cut capital gains taxes, tax revenues increased. When Bill Clinton cut capital gains taxes, tax revenues increased. When G.W. Bush cut capital gains taxes, tax revenues increased. Noticing a trend? When you supply an incentive to invest, people really do invest more, and the more investment, the more return, and the more return the more taxes collected.
This policy may increase income inequality, but it will also eliminate barriers to wealth for the poor and middle class. Speaking personally, this would help me move into a better financial condition, but not make me rich by any means.
Lastly, it is a lucrative policy for dgi folks.
Booyah! Flame away.