Unedited by Larry Chiang
I earn $100/hr from work, making 1 gizmo/hr.
Govt takes $40.
I invest $60 in a company.
It doubles in 10 years (7% apy).
I sell my stock for $120.
I owe $24 cap gains.
I have $96.
I can only buy a $90 gizmo, 7% sales tax -> $96.
Why work?
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