Originally Posted by Warfish
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?
It's not a 65% return.
It's numbers. With any investment there is some risk. It is a balancing act of risk/reward. If the risk does not decrease, and the reward is diminished, I am less likely to invest money. Therefore, yes, I will sit on it or move it out of the country.
Being a very logical person, you already knew this and are baiting people.
My counter point is, if I have already paid tax on the money I earn, then I invest it and have to pay tax on whatever I make that way, then die, and my estate pays tax on whatever I want to give to my children, am I not being triple taxed?