Capital Gains? Try ‘Capital Killer'

Taxes. No one wakes up and says “Oh boy it’s Tax Day!”, But that doesn’t stop the government from taxing more and more and more.

A great example of this is the capital gains tax. It’s a tax on not only speculation, but in most cases, the uncertainty of investing. No one thinks it’s a good idea, except for Uncle Sam, of course.

The real case against this tax is the fact that it kills investing.

Democratic presidential candidate Hillary Clinton’s tax plan consists of a 48.1 percent capital gains tax. So, you invest $1000 into Apple, for example, and gain 25 percent on that investment. That leaves you with $250 in total capital gains. Under Hillary’s plan, you would pocket $129.75. That is nearly half of your profit.

I want to talk to the investor who thinks 48.1 percent is a fair trade for putting that money at that level of risk on the first place.

Less investors means less money for businesses, especially growing startups, and slower economic growth due to less available funds for businesses to produce, deliver, and sell their products. This, in turn means less available goods for consumers, and that creates higher cost to the consumer. In an extreme, but possible example, some companies could pack up and leave the country, hurting the consumer even more. Less companies means less revenue for the government, as well as fewer jobs.

Capital gains is good for no one, not even the government.