Nnanji -> RE: Where are the non-partisan conservatives ? (5/10/2016 9:50:10 PM)
|
quote:
ORIGINAL: DesideriScuri quote:
ORIGINAL: Nnanji quote:
ORIGINAL: Phydeaux But nnanji.. all animals are equal. Its just some animals are more equal than others. The reason we tax incomes differently involves many factors. If I save $100 and earn 10% - I have little risk. If I take the money and start a company - I could lose that money - most small business go bankrupt in 5 years. When you make money by starting a business, thats a socially useful function. It creates jobs, products, infrastructure. Since it has risk, we tax the gains at lower rates in order to offset the possibility of risk. To a point, but it is still government picking winners and losers. Look, for instance, at Ashton Kutcher. He's made a lot of money acting. Then he took that money into start up investment capital. If he is making hand money hand over fist with a new company who is taking the risk. The guy that started the company and found investors or the investors. In your scenario, where should the government assign risk and public benefit? Why should Kutcher be picked as a winner by th government when the actual company startup guy with the idea still have his entire effort on the line? If he had to use his own money to start the company, and would have lost it if the company failed, then he did take the risk. The government didn't pick Kutcher; it picked those that create companies. It just so happens that Kutcher started a company. That being said, I have to wonder how necessary it is, or if it can be capped at a certain number of years. For example, let's say that after 10 years, you lose the lower tax rate. If your business is still around after 10 years, you're likely to have been successful at building it, and your risk is now much lower. Specifically, you are correct. But my side point is that when the government picks and chooses winners and losers there is always inequity. If creating jobs is the goal, why not make that the tax incentive. Each State can determine a "suggested" living wage, not a compulsory one. Every employer could get a tax incentive every year for every full time employee who makes at or more than the suggested wage.
|
|
|
|