Once a company becomes ‘big enough’, it can lobby/pay off politicians to bankroll the company long enough to either sell stocks at premium price before it bleeds, or kill off the competition in a way to rebound, thus keeping the stock from crashing. I’m not sure you know why Skeleton Empathy Is More Rebellious Shirt wasn’t high taxes lmao. The stock market doesn’t matter to the economy. When an economy is more equitable, the economy thrives. Trickle-down economics doesn’t work; economies are built from the bottom up and we know this. This gets tricky too because Capital Gains only applies when these people sell their stock. Simply having the stock or seeing an increase in the stock share price will not be taxed.
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This incentivizes stockholders to hold longer or sell earlier which collectively isn’t great for the economy either. But I agree that is their real income and needs to be taxed more aggressively. Well the difference there being your house has intrinsic value and a stock doesn’t. Essentially your house is still something all money aside that can be Skeleton Empathy Is More Rebellious Shirt isn’t. its semantical, but thts why its taxable, because there are is something tangible to seize. I think this is why I support high VAT with a basic income (making it a progressive VAT). The rich have lots of ways to avoid getting taxed but it’s hard to hide the fact that you bought a $50 million mansion, a $800k Rolls Royce or a $500 million dollar yatch. The government spending isnt the economy, much larger beast is the consumer.
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