• UmeU@lemmy.world
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      8 months ago

      And watch the few remaining small businesses who are operating on a shoestring budget and are the only ones actually paying capital gains get eaten up by the large corporations who offshore their gains. Small businesses who have debt aren’t able to write off principal debt payments so on the books they make money that they pay tax on, but in reality they just gave that money back to the bank to pay off ‘business assets’ which aren’t worth shit when the business isn’t making money. So they make just enough money to pay the bank, then are hit with taxes for the money they paid the bank, and they float by in the red until the inevitable bankruptcy. If they are a franchise, corporate then comes in and sells the business to the next sucker who is willing to gamble on the false hope of the franchise model. Big corporate sells the business to a new ‘owner’ every 5 or 10 years, and the banks get another government backed SBA loan with no risk.

      We are in the latter days of capitalism, increasing capital gains won’t work when the big guys already don’t pay shit.

        • LostWon@lemmy.ca
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          8 months ago

          …or just abolish the stock market (at least that’s how I read this).

          • dangblingus@lemmy.dbzer0.com
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            8 months ago

            At this point, abolishing the stock market would require a restart on the United States as an entity. The stock market is quite closely linked to the banking system. Closing the stock market would crash the US economy into oblivion.

        • maxprime@lemmy.ml
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          8 months ago

          The problem is that’s basically what billionaires do, though. They take out loans with their shares as collateral. So on paper they have huge debt, but it’s minuscule compared to their wealth.