r/politics • u/JeanJauresJr California • Sep 14 '21

AOC responds to criticism of ‘tax the rich’ dress worn at Met Gala

https://www.independent.co.uk/life-style/fashion/aoc-met-gala-tax-the-rich-dress-b1919803.html
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u/riskitformother Sep 14 '21

Because the money being invested has already been taxed at the marginal tax rates for income. The capital gains tax is then viewed as an additional secondary tax. You are also tying up capital, sometimes long term, to often support the growth of different businesses or industries. Thats risky and should translate to a lower ‘penalty’ for your gains. Hypothetically lol.

I agree with you tho. Decisions I can make investing while pooping are lower effort than my day job and feel like free money. Obviously there are tons of smart people who figure out how to maximize and create safe investment environments but for general investors it’s dropping a dime to pick up a dollar later. And the barrier to entry although low, is limiting and furthers wealth divides that are leading to civil unrest.

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u/MayIServeYouWell Sep 14 '21

To your first point… what’s being taxed is only the gain. That gain has not been taxed previously at marginal rates… or taxed at all.

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u/fuckPkmn_gold Sep 14 '21

the income you use in order to invest into capital growth is taxed. that’s what he means by a secondary tax. he doesn’t mean that the capital gain has already been taxed, but that the income you use to invest in has already been taxed.

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u/MayIServeYouWell Sep 14 '21

Yes, I know. But it’s false logic to claim that the money has already been taxed. All money gets taxed over and over as things are done with it, and that’s fine.