Quote:
Originally Posted by sailhog
I should add one thing... my point about the top-heavy structure of the nation's wealth was related to our current debt problems and how they are helping to create inflation. As I understand it, capital gains taxes are at 15%, while earned income tax rates are several points higher. This, to me, would seem to be very poor tax policy. The rates should be the other way around, or at the very least, the same.
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I absolutely agree with you about the Republicans sense of "fiscal responsibility" and they deservedlygot their butts kicked in the 2006 election. Unfortunately...the dems are worse and the reps in Congress don't seem to have learned their lesson either.
As to raising the capital gains tax...that would be VERY bad for senior citizens and people who rely on their savings ans well as very bad for investment in our economy (jobs etc.)...witness what lowering it did for investing a decade or so back. It is a fallacy that you can tax your way out of a deficit.We need THRIVING businesses and individuals so they can pay more taxes on more earnings...not a higher tax RATE on less earnings. Out capital gains taxes right now are higher than most industrialized countries.
We need to THRIVE our way out of deficits while reining in the BIG SPENDERS from both parties and not spending more than we take in.