Quote:
Originally Posted by Warfish
And?
So Investmenr Income is now taxed at say 35% (similar to labor income).
What are you going to do that is going to "hurt the economy" other than choose not to invest, and thus rob yourself of 65% of the return you could have seen? You're simply not going to sit on it, you're going to save it (so it's in a banks posession to loan), spend it (thus moving it into the economy) or invest it anyway (the most likely, as 65% return is still better than 0% return less inflation).
And of course, the Government will have all that much more to spend into the economy as well.
I'm honestly curious. If you are investing it, you're clearly not in need of it for living expenses, so is the 65% return instead of a 85% return going to kill you? And shoudl your work-free investment be taxed less than the labor-derived income of your paycheck?
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I am in the top 1 percent so this affects me... realistically, I will invest in more tax efficient investments, annuities and will probably work MUCH less as the additional tax makes it less worth it.
BUT... I will not make major changes and I will be left with a higher tax bill.
The 250K limit, IMO, is set too low. It should be somewhere around 350 to 500K.