We were discussing capital gains taxes, not corporate taxes.
You are right. Capital gains should be taxed as ordinary income.
Umm no they shouldnât. For many reasons. Starting with the fact that as an investor it is absurdly easy for me to avoid them, which impedes the movement of capital and hurts the economy. Say I have a million invested in oh GM, but GM is no longer a good investment because they decided to stick with combustion engines when electric cars are becoming the smarter buy, now I donât move my money to electric vehicles because I donât want to take the cap gain hit. Or, I just avoid capital investment period and stick to the bond market, now far fewer new business get launched for lack of capital.
Capital investment is a voluntary risk, you might lose money on the deal and itâs entirely voluntary, where a salary is neither, usually. A plumber canât afford to abstain from working for a paycheck because the tax rate is too high, an investor can.
Thatâs a very good point. It would be okay to raise it if they would allow one to deduct more from capital loss then.
So rather than pay taxes, you would allow your capital to disappear?
That doesnât make much sense
So, you put $1M into GM and its doubles in ten years say. You have $2M.
You recognize GM is in trouble and will lose value. And Tesla will be the new GM.
You could sell your GM and pay taxes on 1M - letâs even say itâs 50% tax! And invest 1.5M in Tesla, which is the new GM< and doubles in ten yearsâŚleaving you 3M in ten years.
Or you keep your 2M in a stagnant investment and in ten years you have 2M?
That doesnât seem very wise.
Sounds logical, if you stipulate such growth for the new investment, now run the same scenario where Tesla will only appreciate 40% and the tax rate of taking the capital gain on GM is 50%. Heavily penalizing the movement of capital from one investment to another reduces the agility of the market and that costs everyone money.
Why, that money was already taxed.
All money has already been taxed, except for new weath from resource development and intellectual productivity.
Or run the scenario with GM not remaining flat, but rather, decreasing in value, as would be likely given our hypothetical that they are not being forward thinking.
The point remains - if there are better investments for your money, you will move it there, regardless of taxes. Because you want your money to grow.
It is the only solution Socialists have for anything, steal from others to fund their delusions 
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You got that right! Its a stale and an outdated argument! They have no original ideas (democratic party) so socialism fills in the blanks resembling the empty spaces in their brains which is void of any comprehensive original thought that can produce anything useful!
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They havenât found a problem they wonât throw other peopleâs money at.
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Socialism destroys industry, jobs, innovation, productivity, entrepreneurial spirit, self reliance and individual responsibility, everything that America is = Socialist Democrats want to destroy America
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A higher tax will reduce the likelihood it gets moved. The higher the tax, the less likely it moves when it needs to.
If you doubled your money in GM and were looking at a 500K profit, but were concerned the value would fall mack to your cost basis, wiping out your profit, will you move your money, or hold onto it to beat the tax?
Or evenâŚif you were earning a cool 5% on investment A, but learned you could earn 10% in investment B, would you leave your money earning 5% to beat the tax, or move your money?
Glad we could agree.
Which gets us back to capital gains should be taxed as ordinary income.