Quote:
Originally Posted by Archaea
Taxing capital gains lightly is a generally accepted principle everywhere, except in Denmark and Sweden where there is not tax they don't love.
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I think that may be due to the fact that capital gains is very elastic. People move their investments around easily.
Taxing income would be relatively more efficient because the rich have shown that their work behavior isn't sensitive to taxes rate changes.
First rule of public economics is to tax inelastic behavior.