I agree w/ @trevortombe, having had the benefit of his number-crunching, that a 2/3 incl. rate more nearly equalizes the cap gains tax with taxes on dividends, interest & wages, and is thus a Good Thing. I’d have preferred it had been done as part of a broader tax reform however.
I agree w/ @trevortombe, having had the benefit of his number-crunching, that a 2/3 incl. rate more nearly equalizes the cap gains tax with taxes on dividends, interest & wages, and is thus a Good Thing. I’d have preferred it had been done as part of a broader tax reform however.
ie in the service of making the tax system less distortionary, more efficient, rather than as a revenue raiser/soak the rich scheme.
@acoyne @trevortombe With respect to you both, I submit that what is not recognized in the analysis is the source of Dividends. Much of that is from income earned by small business people, and that it is earned from more risky ventures. And so it should indeed be treated preferentially re taxation.
@acoyne @trevortombe But doesn’t the “fairness” treatment ignore the risk taken by entrepreneurs? Most businesses fail. Many entrepreneurs lose everything.
@acoyne @trevortombe Tax reform is needed one thing I will say time to consider GST 7% once inflation is tamed!!
@acoyne @trevortombe We want people investing in high risk growth projects instead of our protected oligopolies to clip dividends! Also takes us to an 80% higher rate than the US. And the 250k limit means it’ll mainly harm people selling large private assets. If houses good if SMBs bad.
@acoyne @trevortombe Except wealthy can quite easily avoid wages as such. Too many pay very little tax. It would have been good to hike GST by 1% and earmark that revenue for a specific file like pharmacare etc. Rick pay GST. More GST on Maserati than Corolla.
@acoyne @maxfawcett @trevortombe Tax reform overall is needed. This is a start but agree it does not go far enough. The post-war boom happened while taxes were way higher which funded boom in public infrastructure. Companies and executives did just fine. Now it's out of whack.
@acoyne @trevortombe Equalizing the effective tax rate on wage income and capital income is not a “good thing”. They are completely different economic phenomenon. Capital is considerably more mobile than labour, hence it’s more distortionary to the economy than not equalizing the effective rates.
@acoyne @trevortombe Why is that a good thing? It's a fundamentally different type of income.
@acoyne @trevortombe will either @acoyne or @trevortombe descend from their ivory tower to engage with @harleyf ? x.com/harleyf/status…
@acoyne @trevortombe will either @acoyne or @trevortombe descend from their ivory tower to engage with @harleyf ? x.com/harleyf/status…