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by X6S1x6Okd1st 918 days ago
What tax properly emulates gains from holding stake?
1 comments

well first you have to imagine, what is a gain from holding stake? At the end of the day, is it really a claim on future profits? Maybe more reasonably just a stock that you can trade/sell for money. And what does one do with that money? Buy things I guess to increase your welfare.

Tax expenditure in the ideal setting would be spent on clean water, education, etc. things that increase your welfare. And successful companies paying lots of taxes hopefully increase the welfare of a country.

So it is kind of like taxes emulate welfare increase...is the way I see it.