The BetterWealth Show

The Worst Tax Proposal

Written by Caleb Guilliams | Jan 19, 2025 3:28:10 AM

One of the proposed taxes making headlines is the unreleased capital gains tax. Here's why this proposal might be one of the worst ideas yet:

This is one of the worst proposals. You hate the tariffs. I hate the unreleased capital gains tax. You're reducing the amount that's being invested long term. You're putting it into short term consumption. The worst part of it is completely unmanageable and it's such a disincentive to do anything.

Unmanageable and Disincentivizing

  • Reduces long-term investments.
  • Shifts focus to short-term consumption.
  • Creates a disincentive to invest or act.

Comparing Incentives

When discussing incentives, it's crucial to compare this proposal with other existing or potential options:

  1. The amount of tax increase doesn't matter if the overall gain from investments is higher.
  2. Investing in ultra-profitable opportunities is more beneficial even if taxed heavily.
  3. Less taxed opportunities may not provide the same return on investment.

Impact on Investment Potential

The essence of this proposal revolves around the impact on investment potential. Consider these factors:

  • With increased taxation, there is less capital available for investment.
  • Questions arise around where the taxed money is being rerouted.
  • This assumes existing amounts available for investment, though taxes reduce available funds.

Concluding, the unreleased capital gains tax could potentially hinder investment growth, induce short-term consumption, and reduce overall available capital for future investments. It's a proposal that warrants careful consideration before implementation.
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