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

To: Alighieri who wrote (625365)	8/21/2011 3:39:44 PM
From: i-node	1 Recommendation Read Replies (1) \| Respond to of 1573377

>>> He takes a token salary and produces millions in capital gains and dividends...hence his 6M+ in actual taxes paid. And the bottom line is that you guys want to attack 60 years of tax policy designed to encourage economic growth, the reduced rates and separate handling of capital gains and losses, as well as the tax-free status of municipal bonds, essential for the financing of local government activities. It is, frankly, insane, to even THINK about increasing taxes on capital gains (as Jim has essentially pointed out, you could increase Buffet's ordinary income rate to 100% and not collect substantially more money from him). When you increase LTCG rates, the markets adjust overnight, and the rate of return required for investment of capital in the US instantly increases. When you reduce LTCG rates, we have consistently seen surges in revenue and capital investment (see: Clinton economic expansion). From an excellent article that explains it in terms anyone can understand: In 1993, Clinton raised taxes on upper-income Americans, boosting the top rate to nearly 40 percent. But the higher tax rates didn't boost government revenues as Democrats and the administration hoped, despite the economy coming out of a short and shallow recession. "The tax increases added very little to Treasury receipts despite their magnitude. Reports from the Congressional Budget Office and the Office of Management and Budget, and the Internal Revenue Service all agree," high-tech analyst Jerry Shenk writes on the American Thinker website. Clinton boasts about his budget surpluses, but they did not occur until after the Republican-run Congress sent him a deficit-reducing bill in 1997 that he signed reluctantly. Among its tax cut provisions, it cut the capital gains rate from 28 percent to 20 percent. "The 1997 rate reduction on capital gains unleashed the economy, causing capital investment to more than triple by 1998 and double again in 1999. Treasury receipts for this category of tax obligation increased dramatically," Shenk found. "Without tax relief and the internet/communications revolution, the second Clinton term would likely have seen tax revenues decline in a lagging economy," he said. townhall.com These are indisputable facts. It is time for leftwingers to get out of the economics business because frankly, you just have no idea WTF you're doing. You're driving the economy beyond the ditch and into the lake.