Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (317887)	12/29/2006 4:55:18 PM
From: combjelly	Read Replies (1) \| Respond to of 1578297

"Tax cuts can increase revenue over the very long run, even if they don't over the short run." Only if spending is cut at the same. Otherwise, the cost of the debt can reduce the increased revenue quite a bit. In addition, there is the economic costs of the government bonds competing with business bonds on the market. Much of the stagflation of the 1970s was because government bonds squeezed business bonds out of the market and businesses had trouble modernizing. That cut into productivity and led to job growth stagnation. Now true, the deficit then wasn't because of tax cuts, but deficit spending is deficit spending. "2 - Message 23130284 said "The capital gains tax cut was expected to lose $3 billion to the Treasury – yet, has paid for itself at least 16 times over."" Remember this little gem is from a group with a vested interest in cutting capital gains taxes. Their premise is flawed. An investor who changes his investment strategy because capital gains has been cut to 15% from 20% is going to be in a small minority. The market has been doing great, not because of the cut in capital gains, but because corporate profits are up. And the latter is totally decoupled from capital gains taxes.