Eliminating these investment taxes for incomes below a certain level is not ideal, but it would be a good step.
Saving and investing outside your primary residence should be encouraged, especially as compared to consumption. It is unfortunate that we can’t afford to eliminate income taxes on these investments completely, but that would leave a $500B hole in the tax revenues. The increased capital investment would undoubtedly grow the economy, but not fast enough to make up for a $500B immediate loss.
I still wish for a much simpler income tax system — 10% and no deductions, credits or exemptions except for SS income and muni bond income. Completely eliminate the corporate income tax, and only tax individuals. That would remove not just the taxes themselves but the burden on businesses of complying with the tax code. Even though there would be a 10% tax on cap gains and dividends, it would still be among the lowest in the world and attract capital investment.
Completely eliminate the corporate income tax, and only tax individuals.I thought corporations didn't pay income taxes.
Your thinking follows or parrots the "conservative" mindset but I like to try and think outside the box.
Why not tax only corporations and NOT TAX individuals. Which one has more clout with government officials for taxes and spending? Which one would result in increased savings? Who would benefit more from tax reductions thereby use their clout to put pressure on Congress etc.?...You might say it would drive them out of the country, as if they aren't leaving anyway?