Investing Tax Free Policy

October 30, 2008 on 5:12 pm | By admin | In Business | 2 Comments

Many people think that investing tax free is great since it would great to have a source of income that is untaxed. However, from a public policy perspective, there are those who think that it’s poor policy, because there are individuals and entities whose major source of income is from investments.

A policy like this would be exempting those entities and individuals from contributing a portion of their gains, gains they derive effortlessly from the labor of others to create and operate successful business, and that would be a travesty.

Some think that exempting investment income from taxation wouldn’t change the capital formation process, it would just give some a free ride at the expense of others who do the work.

 

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