I don't want Obama to fail -- which is why people need to speak out against his poorly conceived schemes to bankrupt our country.
Sure sounds like it. Econ 101 though - deficit spending during a recession, build surpluses during boom times. How come republicans don't support this thinking? I am all for tax cuts during recessons, but since we slashed taxes the past 8 years, we have already sort of done that. And historically, taxes were at an all-time historical low. You had 15% capital gains tax, and you had low income taxes....lowest in our countries history, and lower than nearly every large industrial country - in fact i am not sure which one we are higher - do you? That didn't help. It failed utterly. The gov't is in debt, and our capital markets are a mess. Our gov't is already effectively bankrupt. The deficit last year was already over a trillion dollars. I think you have to spend money to stimulate the economy. The 1% of the country that's making $250k plus aren't going to hire people if you cut taxes TJ - they are going to buy cheap real estate. That's what all my wealthy colleagues are doing. Looking for bargains. Why buy capital equipment when that's not the best investment. You have to create jobs TJ. That's the life blood of any economy. Workers are the spenders that create wealth. The fastest way to create jobs isn't to cut taxes or anything, it's for the gov't to directly employ people into construction and education. That's what the gov't can do. It's what FDR did. Once the economy gets going - you are right, then you cut gov't spending and balance the budget.
Lou(ser), you are not going to be able to create jobs until two things happen: 1) Debt markets unfreeze 2) Investor confidence is restored Jobs are not created if capital is not available and being deployed. Period. Capital can not be raised if: 1) The credit markets are closed 2) The equity markets are in the toilet. Cutting corporate and capital gains tax rates will provide access to capital through higher stock prices and greater free cash flow within companies. Companies can then go out an invest their cash flow to create jobs. It's that simple. Cutting these tax rates will send the stock market soaring -- it's basic NPV analysis -- which will lead to a huge bump in consumer confidence. Consumer spending is 2/3rds of GDP. It's more important that wasteful government programs, that's for sure. OWNED
If Obama's War on Prosperity works anything like Johnson's War on Poverty, expect tens of millions more rich people over the next 16 years.
Haha - so calling some one a loser is owning them? Nice. Cutting taxes from a small amount to a smaller amount by a measley percent or too isn't going to impact the share price by more than a fractional amount. Like I said, taxes are already super low. Cutting the further is a game of diminishing returns. I would agree that bringing down capital gain tax from 50% to 15% would make a big difference. But cutting it from 15% to 13.5% will not do anything TJ. You should know enough economics to understand that concept. Unfreezing the credit markets isn't as simple as a tax cut. Again, the system is so damaged that it's beyond it. It didn't work to prevent the crisis, and it won't cure it now. Yes, cutting taxes was great in 1981. That's what attracted me to republican thinking. But not good for 2009. It's already been cut. You have to stimulate the credit markets by freeing banks of bad debt and providing them the cash they need to make loans. That's not about cutting taxes - that's not going to erase their bad debt. They need cash. Nothing else will help. You know better.
Forget cutting taxes. Do you think raising taxes during a time like this is smart? I don't believe it is considering you are raising taxes on the people you are expecting to help pull us out. The administration is expecting the private sector to buy these toxic assets and you are raising taxes on them? It just doesn't make sense. I wouldn't mind his economic plan if they kept taxes at these levels for the time being, but raising them is not the recipe for growth. And anyone citing the last 8 years as an example of why tax cuts don't work is not telling half the story. They will never work when you have a President that spends like Bush did.
Wall Street does react to that. If after tax returns are lower because of taxes going up, that gets priced into the market, genius. Not only is affecting people's capital gains, its affecting the profits of companies. Stop speaking on issues you clearly don't understand.
98% of small businesses get a tax break from Obama's plan. Most people get a tax break from small businesses. People who earn money by not working at all for it like from capital gains goes up a small percentage. I have little sympathy for someone who is going to whine over money that they didn't work for at all.
You couldn't be more wrong. 1. Jobs are already being created and was evidenced in the video provided. The investment is coming directly from the govt. Until we have proper regulations credit won't be fixed. It's hard for businesses who want to expand to get the loans now. The stimulus putting people back to work will help restore investor confidence.
They didn't work to earn money from capital gains. They may have worked the first time they got that money, but they didn't do one lick of work when they invested it. Sorry if people make money by not working they shouldn't cry about a small tax hike in times of trouble, and great debt. I earn some capital gains, and I understand that I didn't do a damn bit of work to get it. Sorry but capital gains income is not "hard earned - pull yourself up from the boot straps" type of money.
So nobody can complain about paying a higher tax because they physically did not "work" to earn that? Wow. Are you aware that there is a cost to capital? If you take away the returns, you are giving a smaller incentive to invest. Do I need to explain to you what happens then?
WOW, you are clueless. Totally clueless. If you are doing it RIGHT, then investing money is a considerable amount of work. Do you recklessly toss your money around into stocks without 'doing a lick of work'? If so, you deserve to be poor. That's a side issue however. The real issue is that investing is putting capital at risk. Investing is VITAL to channelling money to it's highest and best use. It is THE key cog to job creation and economy growth. How can you possibly characterize it as 'not doing a lick of work'? You have no cred. Zero cred. You just don't get it. Because of that, trying to convince you that taxing investment at higher rates will stunt growth is just a waste of everyone's time. Until people are willing to put money at risk, then our economy will continue to stall. Putting money at risk won't happen until CONFIDENCE improves. Confidence won't improve when you've got the government spending money recklessly and hiking tax rates without any clear sense of direction/purpose other than to exact 'revenge' on the wealthy. You need many, many lessons on finance before you should be allowed to participate in a finance or economics thread.
What is defined as work? Strictly manual labor? Shovelling dirt? FB - your post is truly ignorant. You just don't have a clue what you're talking about. And to think you teach others for a living. Wow. Now that's frightening.
No I don't just throw my money into stocks. I have a finance guy who helps me do that. he gets paid. he works for his money. Most anyone who is going to do major investing has a professional doing it. If they don't, they deserve to be poor as you put it. I don't think someone is going to not invest because they keep 80% of it instead of 85%. Most tax rates aren't hiked. Most tax rates are lowered. Consumer confidence will return when people are returning to work. Again the people who are wealthy enough to do major investing aren't going to be hurt by a small capital gains tax. If I 2.2 million, instead of 3 million, I'm not going all of a sudden start hording it, and believe I don't have enough to invest. I do understand that investing helps the economy, that doesn't change the fact that money earned from capital gains was not earned by working for it.
As someone who has from time to time been taxed for capital gains I know that I didn't work at all to get that money. I had a professional who's done some work to help me get it, and he was paid for that job. But I know what I did and didn't do. I know what others who've invested did and didn't do.
If you aren't going to invest in something that will make you money, because you only keep 80% of it instead of 85% of it, then you don't sound like a wise investor.
When did I say I'm not going to invest because of a hike? I said it gives me a lesser incentive to invest and that changes my decisions on how and when I make investments. If you can't see the correlation in that, well then, I feel sorry for you. You're setting yourself up as a punching bag in this thread. Get out while you can.
