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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (156900)	9/12/2011 7:37:09 PM
From: profile_14	3 Recommendations Respond to of 206093

The issue does not come from hedge funds inasmuch as it does from private equity firms who truly rely on this lower rate to take greater risk and invest in smaller companies. PE firms do though typically load up a company with debt upon exit and dividend it out to investors -- at 15% rate. The solution to be fair to everyone is to say that the current favorable rates are capped at certain income levels. Meaning, if you make millions, you get the favorable treatment on the first $250k, then it goes against ordinary income. That will keep a lot of the bullshit out of the hair of many, but cause many attorneys and lobbyists to lose their jobs. That will work, but also then remember that the hurdle rate that PE companies will set will be higher and the investments fewer. The problem then is that the money will flow overseas to lower tax rate countries. Therefore, the need to reform our corporate tax rate. Again, circling back, our issue is too much consumption, so we need to slow that down and save more... You do that with a VAT. As a country, we're in for a 5-10 year adjustment process I think. Sock it away for the rainy days ahead. We cannot spend 25% of GDP. As a nation we need to decide how much of GDP we're going to spend and stick to it, whether or not with across-the-board cuts. This is coming from an honest republican who can see both sides and is willing to point out the weaknesses from both ends of the spectrum. JMVHO.