Thread: Taxes?

A very interesting point of view. I don't know about taxing inheritances though. It is highly likely that money would have been taxed already at least one time; but if not, what if you use it to invest? Then it would be taxed again under your outline. I like your separation of passive and active income. The problem (edit: I see) is, there is some investing that requires more time and skill than others (i.e. you can't be passive about day trading) would you have all capital gains taxed the same?

Originally Posted by Chimensch

I think that we should distinguish between types of income: active income from wages and passive income from investments. The income of people who work for wages is limited by the number of hours they can work, both physically and, in some cases by law, while the income that people can make from investments is unlimited. If you invest your money at 12%, it doubles in six years, and doubles again, in another six years, and so on. This means that people who have only wages that cover their living expenses will never get ahead, while those with capital to invest will get richer and richer, while doing nothing. I say, no taxes on wages and a flat percentage on investment income, plus a rather hefty tax on inheritances.