Mr Khan said:
Wouldn't income from investments be from successful investments, and not from failed runs? |
Yeah but the two aren't disconnected.
If you get 100 people, and tell them they can bet $1,000 flip a coin and if they win, they get 4,000. More will say yes, then if you tell them they could get 3,000.
It's one of the reasons why taxes on investments are lower... and should be lower then a standard wage earning. Investments aren't a sure thing and you can't be guranteed on what the returns are. You might make 60,000 you might make 600,000. You might go broke. (Unless the government bails you out!)
Unlike the average guy who knows he'll work his 8 hours, knows exactly how much he'll make etc.
(Now, when paid in stock or the like, that should be taxed at the face value of the stock when passed on just like normal income, with investment taxes only coming into effect afterwords.)
