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Notes and Reflections on Books and Media

by Hannah Leitheiser

Cut Capital Gains Taxes

#economics #book #capitalism

Wealth and Poverty: A New Edition for the Twenty-First Century

George Gilder

2012

2019-05-07

"To realize the benefits of tax cuts in combating inflation therefore, government should reduce taxes on investments and capital gains by somewhat more than taxes on incomes. When taxes on incomes are significantly higher than taxes on capital gains, aggressive young managers in large companies can be more easily lured out into the perilous world of new business. The kind of achievers who will build a successful new enterprise are exactly the people that large companies pay well, much better cash incomes and benefits programs than small, often not yet profitable firms can possibly afford. Our tax policy in recent years is operated to make it much less attractive for such a achievers to leave their well-paid comfort of large corporations for the low incomes in early years and hope for capital gains of new businesses, and new businesses tend to increase productive capacity much faster than the old." - George Gilder, Wealth and Poverty: A New Edition for the Twenty-First Century (2012)