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

To: Alighieri who wrote (624673)	8/16/2011 5:07:49 PM
From: longnshort	Read Replies (1) \| Respond to of 1576865

Buffet will go all munis like Perot did

To: Alighieri who wrote (624673)	8/16/2011 6:45:22 PM
From: Tenchusatsu	1 Recommendation Read Replies (1) \| Respond to of 1576865

Al, > Absolutely nothing... Long term the effect of higher taxes may be absorbed into the general economy, but you'd be fooling yourself into thinking that they will not have any effect whatsoever, especially in the short-term. > I think that's an attribution or a projection...you can't know what you just said to be true...in any case the idea is to make the tax code less vulnerable to manipulation and escape mechanisms. Yes I can. It's called Investing 101. Let's say you get rid of the long-term cap gains tax and treat all of that as ordinary income. All of a sudden, you just cut the ROI of everyone's long-term holdings by up to 25%. Any competent investment manager is going to reallocate some funds out of long-term equities and into tax shelters like munis. This is because the lower return of said long-term equities will no longer justify the risk or the portion of the portfolio they occupy. This is NOT manipulation or an escape mechanism. This is just proper balancing of a portfolio. Of course, most people aren't aware of this. They'd just rather listen to simple-minded slogans like "Make the rich pay their 'fair share!'" instead of figuring out how the rich got to be so rich in the first place. Tenchusatsu