Capital gains cut being talked about
<<Did you forget how to spell depression (g). When the Dem's want a Cap Gains reduction, I smell harder times ahead.>>
According to this morning's news, the talk is of a cut from 20% to 15% BUT ONLY FOR TWO YEARS!!
This is the kind of temporary market distortion which will likely trigger a lot of yahoos (TM, The Yahoo Corporation. All Rights Reserved) to dump their stocks during this window.
Then the rates will go back up...maybe even higher than 20%. (I can see Maxine Waters, Charlie Rangel, Diane Feinstein, and all the other communists arguing that "The rich had their special break, now it's time for them to pay their fair share.")
Net net: Long term investors will continue to pay too much.
(I hope most of you are familiar with the good argument that capital gains taxes are a case of double taxation: a business is first taxed, highly, on its profits, then when the profits result in a higher stock price, the owners of the company are taxed a _second_ time. The dollar flowing into the corporation is first taxed at 40% in corporate income tax , then _again_ at 29% or whatever fed + state cap. gains taxes are at.)
The solution is to eliminate the capital gains tax completely.
But then the inner city welfare breeders will squawk that their "entitlements" are being cut.
--Tim May |
