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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (143819)	10/28/2008 5:01:40 PM
From: TimF	Read Replies (1) \| Respond to of 173976

the jury is out on whether shareholders change their behavior based on shifts in the capital gains rate Nonense. People respond to economic incentives. The only thing the jury is out on is how big the response will be. The jury will always be out on this question, because the response will vary at different times, with different conditions, at different tax rates etc., so there will never be one simple answer and there likely will never even be a formula or equation you can use to determine the exact result. Those making more than $1 million, who would get 66% of the benefit In addition to the question of whether I'm just going to accept data from the Tax Policy Center Its reasonable that they get most of the benefit since they pay most of the capital gains taxes. Also more generally they pay the majority of federal income taxes, and they also get hit the hardest by tax increases. If taxes are going to go up and down (and presumably this pattern will not stop any time soon), then its reasonable to let the rich (who pay the most) benefit from the decreases, while being hit the most by the increases. If anything, slashing the capital gains tax for two years may prompt more people to sell by the end of 2010 Slashing for a defined short term is usually a bad idea. The cut should be indefinite. Then a possible future increase might prompt selling before it takes effect, but we can put that off as long as we want by not increasing the rate.