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 (319538)	1/8/2007 9:44:21 PM
From: combjelly	Read Replies (1) \| Respond to of 1578880

"but it can be large, and even a small sustained benefit in economic growth is very significant over time." Give an example of when it was large. Or even small. "Do you think that there is a strong reason to think such an increase would be harmless or nearly so?" Yes. Tax free bonds have a very low yield. As does most any savings instrument with a guaranteed rate of return. Now a sufficiently broad portfolio is going to yield significantly above those instruments, even if the capital gains tax is doubled or tripled. Which won't be in the cards. In principle, a higher cap. gains is going to decrease the money invested if the profits are re-invested after taxes are paid. I don't know what percentage of investments which fall under cap. gains that this would be true of. Investors tend to either trade a lot, and hence don't fall under cap. gains but are taxed as income, or they tend to hold for longer term and only trade when they want the cash for other uses.