06-22-2015, 12:44 AM
Certain countries use this method. I don't think it's a bad idea because as you said it does encourage people to buy for the long term. On the negative side of things, it would make the tax laws yet again more complicated. And when it comes to taxes (and most other things), simple is good.
What I would really like to see is capital gains & dividend taxed together with income. Once again, most countries have a progressive system when it comes to taxing your salary but no progression (or very little) when it comes to capital gains. Seems a bit silly that someone living off a regular job and earning say 30k per year will pay much less tax than someone who earns that 30k through dividends & capital gains. And on the other end of the scale, a lot of the rich people can create companies and pay themselves in capital gains to get sometimes tens of percentages off their tax %.
What I would really like to see is capital gains & dividend taxed together with income. Once again, most countries have a progressive system when it comes to taxing your salary but no progression (or very little) when it comes to capital gains. Seems a bit silly that someone living off a regular job and earning say 30k per year will pay much less tax than someone who earns that 30k through dividends & capital gains. And on the other end of the scale, a lot of the rich people can create companies and pay themselves in capital gains to get sometimes tens of percentages off their tax %.