alt Hacker NewsWhy is it that property is taxed less than productive work? Someone sitting on their ass doing nothing but sucking resources through dividend payments has that income taxed less than the workers' income who did the work that generated those dividends. Why isn't the reverse the case? Heavily tax passive income, and lightly tax active income. Incentivize productive activity and penalize rent-seeking parasites?
The reason to not tax investment super harshly is that it’s an incentive to not just stuff your money under a mattress. Many people have jobs and careers they wouldn’t otherwise have specifically because 100 rich guys stuck their money in various VC funds (especially in this here audience on HN). If we taxed the idea of investment ruinously, we decrease that incentive. You may think that somehow all those jobs (or more) would somehow materialize without investors investing, but that’s a hypothesis or an argument, not a proven conclusion.