E30: Ramifications of Biden's proposed capital gains tax hike, federal budget, India's COVID surge, founder psychology & more

Historical argument to keep capital gains tax lower than wage tax is to incentivize investment.

Raising capital gains tax to wage-levels will reduce the recycling of investment gains back into businesses.

Punchline: doubling the capital gains tax cuts re-investable capital by ~50% across all investment time horizons

This shifts 50% of new investable capital away from private sector allocators and into government allocators.