> you still have capital gains from stock trading, etc.
That's the whole point -- without corporate taxation, shares in corporations are more valuable, and the taxation is drawn from capital gains instead -- and capital gains tax should be far higher, of course (and ideally progressive as well, based on your total income).
Sure, companies can "sit on their money", but they already can. And that money is presumably invested anyways, so it's still being productive (on R&D in other companies, for example), and it certainly gets spent eventually.
> Sure, companies can "sit on their money", but they already can.
Not entirely, it is taxed at least once when earned (corp earnings tax).
Personally, high capital gains tax gives me a lot of hesitation, as you actually want to encourage people to invest and not dissuade them from doing it.
> Personally, high capital gains tax gives me a lot of hesitation, as you actually want to encourage people to invest and not dissuade them from doing it.
Interesting. I hold the opposite position as I would rather make company re-investments more attractive.
> ...Switzerland appears to be taxing total networth.
This is a wonderful idea! Though I could imagine the games that could be played with valuations.
That's the whole point -- without corporate taxation, shares in corporations are more valuable, and the taxation is drawn from capital gains instead -- and capital gains tax should be far higher, of course (and ideally progressive as well, based on your total income).
Sure, companies can "sit on their money", but they already can. And that money is presumably invested anyways, so it's still being productive (on R&D in other companies, for example), and it certainly gets spent eventually.