We should significantly increase capital gains taxes by taxing it at the same rate as ordinary income.
If an investor makes money one year then loses it later, we should give them their taxes back.
I wonder how progression would interact with the giving back. I.e. if you had gains while being a high-maginal-rate taxpayer and then losses at a lower rate or vice versa.
This does seem like a kind of basic problem and maybe hard to resolve without making the proposal more complicated. In particular, the year you have losses you are presumably in a very low bracket indeed. And using a rate from your past would be even more complicated than carrying deductions forward.
I wonder how progression would interact with the giving back. I.e. if you had gains while being a high-maginal-rate taxpayer and then losses at a lower rate or vice versa.
This does seem like a kind of basic problem and maybe hard to resolve without making the proposal more complicated. In particular, the year you have losses you are presumably in a very low bracket indeed. And using a rate from your past would be even more complicated than carrying deductions forward.