Democrats versus Republicans

[chucklesR]

Hog,
If I work hard for a living, get taxed at about 28% on what I make and somehow still manage to save a little and invest it; then eventually (but always more than 2 years later) sell or cash out on that investment how is that increase in value (i.e. capital gain) not earned????
Explain that to me in little words because as far as I can tell I not only participated in the american dream I brought a little of the dream to others already.

[PBzeer]

Hawg - we already went through the tax rate thing, a while back, so I'm not going to go into again. What I will say, is that taxes will not solve the deficit. Only lower spending will bring the debt down, on a consistent basis.

[sailhog]

John,
You're absolutely right. This is a complete waste of time.

[camaraderie]

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.

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.

[PBzeer]

Can I get an Amen, brother?

[cardiacpaul]

"It's people like Paul who are the problem. I don't mean to sound too harsh, but if someone could go down there and shoot his ass dead, all of our taxes would go down about 50%. I've run the numbers, and that's what it comes down to, folks. Soooo... the question is.... who's going to do it?
Paul, are you going to be out at that little pub around the corner from your house tonight?"

now that funny, i don't care who ya are, and god bless the lil pygmies down there in south america.

You think that after 6 'events' and a pacemaker ICD, that a bullet is gonna put me down? hell, he cuban thinks that I'm some kind of beazulbub or sumpin.

[sailaway21]

Cam is correct. Even the country's of Europe have figured out that a high capital gains rate is counterproductive. While the US rate has come down from historic highs it is still higher than many country's within Europe.

Long term capital gains (over two years) should not be taxed at all! What do we want; people burying their money in the back yard, investing it in tax shelters, or investing in the American economy? Mind you, they've already paid taxes on the money they're investing.

Probably the biggest shock to me as a youth was that I paid taxes on the interest earned in my savings account. It was the start to my economic conservatism. I'm making $1.45/hr at the hardware store and I'm saving my money up for a car, and I'm pinching pennies to do it. I'm filling out my tax return, feeling quite proud of myself for saving that money and that I'd earned a bit on it by way of interest, and I find out the Fed's want a piece of me again! I said at the time, and I've seen nothing to change my opinion in the interveneing years, that this is b.s.. Capital gains taxation is the same thing.

[sailaway21]

The interesting thing about millionaires is the frequency that people move in and out of that classification.

The libs would like to feed the popular impression that it's all Thurston Howell III's with their inherited wealth sitting around lighting cigars with $100 bills, like CruisingDad. That's not true and it's far more likely to be the kid from down the street who was delivering your newspaper ten years ago. Also, many people end up in that classification during a few short peak earning years.

The trend to focus on is the steadily increasing standard of living of all Americans and keeping viable the economic freedom we have to ourselves become rich. Class envy is not an American trait. You could ask de Tocqueville.

[PBzeer]

One would think that sailors, of all people, would understand how "well" tax the rich schemes work. Especially if they own a brand no longer being made. Can you say Luxury Tax, boys and girls?

[sailaway21]

The only job other than government employee that I've seen listed for Barack Obama is "community organizer". Not to many people are questioning who he was organizing the community for. If you've ever heard of
ACORN, and you weren't looking for a poverty based loan guarantee, it was probably from the newspaper under an article on voter registration fraud. And it's not new news. Guess who was also doing legal counsel work for these people who help the Chicagoan dead to vote?

Michelle Malkin on Obama & ACORN on National Review Online