My wealth was $x one year. And $x + $y the following year.
If I work my ass off doing manual labor, $y gets taxed more than if I merely own equity that got me the same amount.
And people wonder why the middle class is dying.
If I work my ass off doing manual labor, $y gets taxed more than if I merely own equity that got me the same amount.
And people wonder why the middle class is dying.
Tax rates ideally should be flat for all sources of income net of risk, loss, and inflation. To achieve this you either allow deductions for these, which are limited or non-existent in the US, or you lower the tax rates to offset the fact that you can't deduct these.
No, you don't.
You actually get a tax credit (e.g. you pay LESS taxes), if you incur certain types of capital losses.
You still haven't pointed out which capital losses get you taxed more. If you were referring to inflation, then why not just say that directly?