[lmm]

> The capital being invested has already been taxed at the source.

So? A worker has already paid all kinds of taxes in their life, but they still get taxed on their income.

> Capital gains shouldn’t even be taxed. I earned it, paid taxes on it; what I do with it beyond that is no one’s business.

Your original capital is yours, but if you get income from it, you should be taxed the same as any other income. My time is and should be my own to do with as I see fit, but I still get taxed if I get income from it.

[chii]

> Your original capital is yours, but if you get income from it, you should be taxed the same as any other income.

capital is what makes future productivity improvements possible. If you took a risk investing your capital, but that return is taxed the same as wage income (which has zero risk associated with it), you would be discouraged from investing that capital, and instead consume more of it (ala, why invest in your business buying plant and equipment, when you could just go on a lavish vacation!).

The low capital tax is to encourage more capital investment, because those with capital has the choice to not invest (and thus society as a whole loses the potential benefits of such investment). People with wage income don't tend to have the option of _not _ working, so lowering their tax won't encourage _more_ wage income.

[danschmitt]

> capital is what makes future productivity improvements possible. If you took a risk investing your capital, but that return is taxed the same as wage income (which has zero risk associated with it), you would be discouraged from investing that capital, and instead consume more of it (ala, why invest in your business buying plant and equipment, when you could just go on a lavish vacation!).

The fairy tale that no one would invest if, instead of 100%, they were only allowed to keep, say, 50% of the profits is far-fetched. The game would go on, only with more (in the optimal case) redistribution and less accumulation among the already well-off. The issue here is the relative inequality caused by capital gains, which in the long run tears societies apart, because the middle class can no longer afford apartments/houses and vacations, and the lower class can no longer afford basic needs (food, health care, mobility).