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The Concerning Ideology Of r/FemaleDatingStrategy | Ep. 126

Dropping In With Charlie Houpert

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Why Are Capital Gains Taxed Lower Than Income?

The justification for a lower tax rate on capital gains relative to ordinary income is threefold. First, it is not indexed for inflation. It is a double tax. And it encourages present consumption over future consumption. By favoring present over future consumption, savings are discouraged. So the capital gains tax is lower to try to encourage savings.

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