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A comment on Taxation of Carried Interest. Parent comment

Re:Taxation of Carried Interest by bluecalm on Sunday June 10, 2018 @03:03PM (#17279659)
You wouldn't be ahead because there is risk in investing. The biggest capital gain tax the less sense it makes to invest. That's why the capital gain tax rate is different than income tax. Making capital gain tax progressive is a recipe for not getting any more investment from private citizens.
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Re:Taxation of Carried Interest by sjwright on Sunday June 10, 2018 @10:00PM (#17281208)
Who says we need more investment from private citizens? Perhaps we need less.
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Re:Taxation of Carried Interest by bluecalm on Thursday June 14, 2018 @09:37AM (#17311562)
If you care about people benefiting from economy growth you want them to own part of it. This is accomplished by them investing instead of consuming.

If something really crazy like progressive capital gain tax is introduced then a lot of people will rather consume instead of taking bets with a lot of risk attached to it and very little upside. This goes for every high tax: if the upside becomes not very tempting you may just as well settle on what you have and stop trying to improve your situation/produce more as huge part of that surplus will be taken away from you anyway.

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Re:Taxation of Carried Interest by colanderman on Sunday June 10, 2018 @03:06PM (#17279670)
Since when do you pay taxes on capital losses?
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Re:Taxation of Carried Interest by briandear on Sunday June 10, 2018 @06:35PM (#17280547)
You don’t. But you lose the money. Risking $10 to make $10 is much different that risking $10 to make $0.10.

You are more willing to invest at 1:1 odds than you are 100:1. Especially since the odds actually don’t reflect the actual risk of the investment itself. 100:1 on a sure thing is better than 1:1 on something that is very high risk. However, no investment is a sure thing. There is a non-zero level of risk in any investment, so if the payoff doesn’t match the risk, you simply will put the money under your mattress.

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