> Capital gains tax should be abolished.<
I have mixed feeling about that. Let’s say a guy invests in a brand new company. And that company uses the money to grow the business. That’s obviously good for the country.
But now let’s say some guy bought 100 shares of some old company like Coca Cola or Ford. A year later he sells those shares for a profit. That particular investment really did nothing to help the country.
“But now let’s say some guy bought 100 shares of some old company like Coca Cola or Ford. A year later he sells those shares for a profit. That particular investment really did nothing to help the country.”
It does.
The market for shares is why people invest capital.
The market provides liquidity, which encourages capital formation.
The old guy who buys 100 shares of Coca Cola is a shareholder, having exchanged money for ownership.