that actually really encourages risk-taking.
For instance, your annual income is 200k, and you allocate 50K to investment. If you gain 50K from that investment, your total income is 250K, and should be taxed that way.
If you lose that 50K investment completely, your real income is actually only 150K, should be taxed that way too. So, instead of losing 50K after-tax money, you only lose about 30K.
Isn't that treating investment gain fairly, while still encouraging risk taking?
Just my 2 cents.
For instance, your annual income is 200k, and you allocate 50K to investment. If you gain 50K from that investment, your total income is 250K, and should be taxed that way.
If you lose that 50K investment completely, your real income is actually only 150K, should be taxed that way too. So, instead of losing 50K after-tax money, you only lose about 30K.
Isn't that treating investment gain fairly, while still encouraging risk taking?
Just my 2 cents.