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Culture War Roundup for the week of December 4, 2023

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Current tax laws encourage bubbles and poor investing. Just buy a garbage bond or shitcoin and uncle sam will barely touch it, but god helps you if you invest in a company actually making money.

I'm confused. Are rich people who choose to deliberately put their money in suboptimal investments because of the capital gains tax?

Just so. You have a million dollars. You can either:

A) put it in a highly productive, socially beneficial company, which produces 100 k/y profits

B) stack it under your mattress, buy a huge house you don’t need, or a very secure (read: lame) bond

The tax is 33 % on profits. The alternative wealth tax is 10k/y.

Under an income tax regime, your personal profit is A: 67k and B: 0 .

Under a wealth tax regime, your personal profit is A: 90k and B: -10 k

Of course B is also safe, that’s why it’s so popular. A results in a societal gain greater than 100k/y, B close to zero. For a more productive economy, people should be encouraged to choose A.