
Gary van der Merwe
738 posts

Gary van der Merwe
@GaryvdM
Dev, Opensource fanatic, Centrist Classical Liberal, Humanist


You work extra hours, save your money, and watch the taxman take his cut through income taxes. Fair enough, you think. But then the government comes back for seconds when you try to grow that already-taxed money through investments. Capital gains taxes represent the purest form of economic double-dipping. The money you invest comes from income that already ran through the IRS meat grinder. When you buy Apple stock with your after-tax dollars and sell it three years later for a profit, the government treats that gain like fresh income ripe for taxation. Your profit exists only because you delayed consumption and took on risk with money already taxed once. Think about what actually happens when you invest. You take money that could buy groceries or vacations today and loan it to productive enterprises. Those companies use your capital to build factories, hire workers, and create value. The "gain" you earn reflects the real economic growth your patience and risk-taking helped generate. Taxing that gain punishes the very behavior that drives prosperity: saving and investment over immediate consumption. The absurdity becomes crystal clear when you consider inflation. Say you buy $10,000 worth of stock in 2020 and sell it for $12,000 in 2024. After 20% inflation, your "gain" barely maintains purchasing power. Yet your revenue service will cheerfully tax you on that phantom $2,000 profit. You actually lost money in real terms, but you still owe capital gains tax. Capital gains taxes are legalized theft that destroys the incentive structure capitalism depends on. Every dollar extracted through capital gains taxes represents resources diverted from productive investment into government consumption. The economy grows when people save and invest; it stagnates when politicians punish thrift and reward spending. Not to mention that if they want to share in the spoils when you invest successfully, they should also absorb their share of the risk when you lose money.











Link in bio 🔗. "If we get 39%, we won't make it." Helen Zille delivers a stark reality check on current polling data. Without hitting a 50% plus one majority, taking the bold actions needed to fix the country becomes nearly impossible. #BizNews #HelenZille #SAPolitics



@ediz1975 I wonder why cyclists are the most hated in all cities?



















