Federal Government Abolish Taxing Capital Gains Discussion
In his article written for the National Review Online, author Bruce Bartlett presents the following argument against the imposition of capital gains taxation:
Trees grow and they also produce fruit. The fruit is income and is justly taxed. But growth of the tree is an increase in capital. More capital will produce more income in the future, which will be taxed, but taxing the capital itself is counterproductive. We are taxing the tree and the fruit, when we should only be taxing one or the other. Taxing capital gains is like chopping limbs off of trees. We only end up with less fruit in the future. Not taxing capital gains—not chopping limbs—would allow the tree to grow, which will produce more fruit in the future and increase government’s take of it (Bartlett, para. 3).
In this discussion, explain whether you believe that the federal government should abolish the current capital gains taxation structure. Provide solid justification for your stance on the issue with relevant examples and appropriate citations.