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Joined 1 year ago
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Cake day: July 1st, 2023

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  • I think there needs to be a heavier tax on short term investment. This would disincentivize quarterly returns over multi year returns, and make investors prioritize longer term planning.

    Right now you only pay taxes on stocks based on what you cash out every year, I think the length of an investment should ease its tax burden. Hold a stock for 1 year, you pay a high percentage when you sell. Hold it for years and that percentage drops every year until you hit a minimum. I think a 5 to 10 year period before it hits the tax minimum would be good for encouraging longer term investment.

    It would also shift the focus away from companies being increasingly profitable over short terms periods. That’s simply not how any business works, and it’s ridiculous that it’s become the norm to expect that. It gives companies a chance to have bad quarters and years, without as much fear that their investment will dry up overnight.