[riffraff]

It would appear that the relative tax inefficiency of dividends over buy backs (and lack of wealth taxes) has fundamentally messed up the business world.

Alas, I don't see that likely to change.

[mike_hearn]

What's the proposed link here? Wealth taxes don't seem to incentivize the creation of profit. If anything it's the reverse: business owners are incentivized to keep ploughing profits back into the company because it reduces the apparent value of the firm if it's not profitable.

[bandrami]

Along with the "borrow tax-free against unrealized equities gains" hack.

[nh23423fefe]

Taking on leverage risk and paying interest is a "hack"?

[bandrami]

Yes, because it's income and we all know it's income and it should be taxed

[nh23423fefe]

so you want to tax home equity loans or 401k promissory notes?

[plorkyeran]

401ks and loans for houses are already things which have specific tax carveouts, so the idea that those would be exceptions even if secured loans in general were taxed doesn't seem like a particularly bold idea.

[bandrami]

Yes to both, though I'm willing to listen to a carveout for HELs on primary residences (particularly if they're for improvements)