It’s even worse.
If you lose money, you lose almost all of it. For those with tax experience, you can take a write off on losses to offset gains on others.
But, that $10,000 investment (after you paid taxes on it), say it grows to $20K, as you stated, 100% growth (with accompanying risk). On top of paying state and local income taxes (0 to 10.75), you have Capital Gains Tax (10-37%) plus Income Tax (10-39.6). So taking averages of these taxes, 5.25% (State Income) + 23.5% (Cap Gains) + 24.8 (Fed Income) we have a tax bill of 53.55%
Lucky you, you get to risk $10,000 of your hard earned earnings (after tax) and if you see 100% growth, you will be taxed on 53.55% of that growth; or get to keep $4,645 of your investment.
Makes you want run out as fast as you can and invest your earnings, doesn’t it? /s
Never underestimate the ability of DEMS to screw up any system.
This isn’t a screw up.
Deep State is doing this deliberately.
All those rich folks who were hoping to be eaten last are the idiots.