10-21-2013, 10:48 PM
(10-21-2013, 08:49 PM)kandrathe Wrote: It would need to also factor in your liabilities. If I borrow a million, and invest it in a new venture, then effectively I'm zero. If my new venture becomes worth 5 million, then I'm 4 million in the positive, and that wealth should be taxed at a very low rate.
If you have nothing, you have no wealth. If you borrow a million, you still have no wealth. Nothing changes.
If four million in the positive is going to be taxed at a very low rate, you're not going to capture that much tax, unless you're planning on some truly punishing tax rates on the extremely wealthy.
-Jester