Re:Declining worker power vs. rising monopoly power: explain...
by ip26 on Wednesday June 03, 2020 @05:04PM
(#23408726)
I was always told the reason was to encourage investing, to increase the velocity of money. Interest income from parking your money in the bank is taxed as ordinary income; lower taxes on investment income (capital gains) helps make investing more attractive vs parking the money.
This may not make a lot of sense right now when interest rates are close to zero, but there was also a time when interest rates were 20%.
This may not make a lot of sense right now when interest rates are close to zero, but there was also a time when interest rates were 20%.