[SES1066]

Let me see, I take an already taxed dollar and I risk it as an investment. My investment makes for liquid markets, diversified capitalization that reduces the power (somewhat) of the oligarch class, thus benefitting the national economy. If I do this as an INVESTOR, holding the money for a year+1 day, then I get a beneficial tax rate as opposed to paying normal rates on dividends and interest.

This upsets the LEFTists at the NYTimes because they regard anything to the right of Socialism as unfair treatment. I say that, barring a uniform flat tax, what other economic system has done better at building the middle class as a bulwark of economic strength over the past century?

[KarlInOhio]

Except with a lot of the carried interest treatment there is no initial investment. Every time I hear about it, it looks more and more like a tax scheme to count salary as capital gains.

My cure for this is to charge normal tax rates for all capital gains but increase the cost basis by the inflation rate. That way these carried interest schemes will have zero cost basis and be hit with the full tax.