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

To: combjelly who wrote (319546)	1/8/2007 9:56:14 PM
From: TimF	Read Replies (1) \| Respond to of 1578925

Lowering capital gains taxes doesn't just affect the reinvestment of profits made after the reduction, it effects the initial decision to invest on any investment subject to capital gains tax. The expected after-tax rate of return is higher with a lower tax rate. The effect is reduced by the uncertainty over capital gains rates. The government could always raise them again and this risk has to be taken in to account. Consistent low rates would do better then yoyoing between high and low rates, or even moderate and low rates.