The Instigator
fccorder
Pro (for)
The Contender
Freddy.Kruger
Con (against)

The United States should abolish the capital gains tax.

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Debate Round Forfeited
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Voting Style: Open Point System: 7 Point
Started: 1/21/2018 Category: Politics
Updated: 1 month ago Status: Debating Period
Viewed: 3,805 times Debate No: 106949
Debate Rounds (3)
Comments (0)
Votes (0)

 

fccorder

Pro

I would like to start by saying the capital gains tax got to go
Freddy.Kruger

Con

if the gov would not get any money there will be an anarchy
Debate Round No. 1
fccorder

Pro

Only certain types of businesses can TAKE advantage of this tax. That being said, Not all businesses can take advantage of this beneficial 20% rate. C corporations, for example, are not able to leverage capital gains , unlike an S corporation or LLC, the income does not flow through to the shareholders or members on an individual level. Instead, the capital gains tax is taxed on the business level at the ordinary (higher) corporate tax rate. Before you sell an asset which you anticipate earning a profit on, it is always worth speaking with your accountant or financial advisor to understand your options and the implications that the sale will have on both your business and your personal income tax rates.
Freddy.Kruger

Con

look ok if the gov does not get money we would not have an army
Debate Round No. 2
fccorder

Pro

The government get's money a lot of other ways then just capital gains taxes. your showing a same part. The capital gains tax harms economic performance. It turns out that there are many reasons why the capital gains tax harms economic performance. Clemens, Lammam and Lo explain the "lock-in effect." "A capital gain (or loss) generally refers to the price of an asset when it is sold compared to its original purchase price. A capital gain occurs if the value of the asset at the time of sale is greater than the initial purchase price. ...Capital gains taxes, of course, raise revenues for government but they do so with considerable economic costs. Capital gains taxes impose costs on the economy because they reduce returns on investment and thereby distort decision making by individuals and businesses. This can have a substantial impact on the reallocation of capital, the available stock of capital, and the level of entrepreneurship." Subpoint A:higher rate would have negative effects on the economy by reducing U.S. investment or driving it overseas. If firms pay more in capital gains taxes in America, they would make fewer investments -- especially in the businesses or projects that most need capital -- and they would hire fewer workers, many of them middle-class.
Subpoint B: Higher capital gains taxes would reduce economic activity, especially financing for private companies, innovators, and small firms getting off the ground. Taxes on U.S. investment would be higher compared with taxes abroad, so some investment capital is likely to move offshore.
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Debate Round No. 3
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