Obama to eliminate all cap gains taxes for VCs and entrepreneurs

Re:Obama to eliminate all cap gains taxes for VCs and entrep... by Retric on Friday October 10, 2008 @02:31PM (#329112)

I think the best way to use taxes to stimulate investing is to have an AMT that taxes total net assets. A flat 1% AMT on assets over 1 million would let someone liquidate ~4% of their holdings a year without negative tax consequences and "Safe" investments are going to look less attractive.

Note: I am suggesting an AMT so if you have 10 million in assets you will pay at least (10M - 1M) * .01 = 100k in taxes, but if you would pay 101k in income + capital gains taxes nothing changes.

PS: People trying to avoid capital gains on highly appreciated assets distorts the market. This would be a "cheep" way to increase flexibility without dramatically impacting tax revenue. It most heavily impacts passive / safe investors while having little impact on those with strong 12+% returns.

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Re:Obama to eliminate all cap gains taxes for VCs and entrep... by fallentimes on Friday October 10, 2008 @03:28PM (#329167)

I don't like the idea of recurring taxes (even though many of them exist). Why should you be penalized each year for what you own? I could understand taxes on net worth "additions" but even then... Also, how does one properly assess their net worth let alone thousands (millions?) of people? It sounds like more government TPS, red tape and paper work will be involved.

And I say all this as a minimalist - all my possessions could fit in a 12x12 room.

I have a fix: Reduce spending & lower taxes. (Not libertarian style but in a true fiscal conservative sense) The government is so bloated with worthless employees, pork and shit kicking programs it's sickening.

[ Parent | on HN ]