Gingrich Pushes 90s-Era Proposal To Eliminate Capital Gains Taxes As ‘A New, Bold idea’
Gingrich Pushes 90s-Era Proposal To Eliminate Capital Gains Taxes As ‘A New, Bold idea’
Last week, Newt Gingrich’s American Solutions for Winning the Future rolled out its “12 American Solutions for Jobs & Prosperity” plan, which he calls an “alternative” to President Obama’s economic recovery plan that “isn’t more money for more government, more power for politicians and more make-work for bureaucrats.”
Bill Bennett hosted Gingrich on his radio show today, offering him a forum to push his proposals. During the conversation, Gingrich claimed that solution #8 on his list — eliminating the capital gains tax — was “a new, bold idea”:
GINGRICH: And we have three big things. First, we have zero capital gains. We eliminate the capital gains tax, which is the same as China and Singapore. Second, we go to the Irish corporate tax level, which is 12 and half percent. And third, we make permanent eliminating the death tax, so that small businesses and family-owned businesses aren’t threatened by the IRS when somebody passes away. Let me mention briefly on capital gains, cause it’s a new, bold idea. It’s one that Congressman Paul Ryan of Wisconsin’s been working on.
Listen here:
There is nothing “new” about Gingrich’s idea. In fact, Gingrich has been pushing for it since 1997, when he was Speaker of the House:
Aggressively pushing tax cuts back to the forefront of his political agenda, Speaker Newt Gingrich suggested today that all capital gains and estate taxes be eliminated. He vowed that with or without President Clinton’s support, House Republicans would vote on a tax cut this year.
In September 2008, as the U.S. economy became undeniably weaker, Gingrich again proposed abolishing capital gains taxes, claiming that eliminating them “would cause the stocks held by two-thirds of the American people to soar in value.” But as Center for American Progress Action Fund Vice President for Economic Policy Michael Ettlinger pointed out, “there are, to say the least, flaws in this argument.”
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Leftovers again… refried newt.
February 17th, 2009 at 6:16 pmHello? Are we not all “threatened” every year?
February 17th, 2009 at 6:16 pmI saw some other newts trapped in amber at the Natural History museum once. Fascinating.
February 17th, 2009 at 6:17 pmThe big money boys keep winning!
February 17th, 2009 at 6:17 pmDoesn’t he have a sick wife to cheat on and divorce?
February 17th, 2009 at 6:18 pmbold newt?
old newt.
*
February 17th, 2009 at 6:18 pmGingrich is a genius. Why isn’t he Speaker of the House or something?
February 17th, 2009 at 6:19 pmObama claimed his stimulus package contained the most progressive tax program in U.S. history. Hardly.
When private equity gets $26 billion in tax breaks for buying back corporate debt, that doesn’t sound the least bit progressive.
President Obama shouted out to Dirty Max Baucus numerous times in his Denver speech. Max is in the pocket of for-profit health care.
February 17th, 2009 at 6:19 pm“there are, to say the least, flaws in this argument.”
One of which is that the majority of those “2/3 of Americans” hold these stocks in tax-deferred 401k plans -the abolition of capital gain taxes would not benefit them whatsoever.
Gingrich is either lying, ignorant, or both -as are most Republicans.
February 17th, 2009 at 6:20 pmthis “newt” guy is REALLY a moron
capitol gains taxes create jobs, when a person is faced with paying tax or investing back into their company they invest into their company
the “death tax” will never affect middle class businesses
newt is not only a moron, he think’s we’re as idiotic as he is
February 17th, 2009 at 6:22 pmNewt is a tired ’90s retread throwback. Yawn.
Besides, essentially no one has any capital gains to tax.
February 17th, 2009 at 6:22 pmWell, seein’ as how 17.9% of US households own stock according to the just released 2007 Federal Reserve Survey of Consumer Finances, eliminating the capital gains tax is mainly intended to help these, mostly very wealthy people.
There is no reasonable way to make the case that eliminating the capital gains tax increases investment spending.
Really, with all the room in that enormously large head, that is all he could come up with?
February 17th, 2009 at 6:25 pmNewt’s suggestions sure seem to make sense verses the Obama plan that includes $ 30,000.000 for some mouse protection in California. How is that going to get me a job?
February 17th, 2009 at 6:25 pmIn September 2008, as the U.S. economy became undeniably weaker, Gingrich again proposed abolishing capital gains taxes, claiming that eliminating them “would cause the stocks held by two-thirds of the American people to soar in value.”
Really , Salamander Boy ?
Are you going to guarantee everyone who holds GM stock that by eliminating capital gains taxes that their next-to-worthless stocks will now almost match it’s $80+ dollar high ?
I wouldn’t hold my breath waiting for that ………
February 17th, 2009 at 6:26 pmI think you have to start proving crap like this……
February 17th, 2009 at 6:27 pmI’m afraid only a very wealthy relative is going to be able to get YOU a job, son.
Shoulda stayed in high school.
February 17th, 2009 at 6:29 pmDeuce Coupe Says:
——————————————————————————–
Newt’s suggestions sure seem to make sense verses the Obama plan that includes $ 30,000.000 for some mouse protection in California. How is that going to get me a job?
February 17th, 2009 at 6:25 pm
You believe someone who has investments that produce capital gains is going to give you a job because they’re simply receiving another (undeserved/unearned) tax break ?
You must have gypsies camping out at your doorstep to sell you miracle hair tonic and magic beans ………
February 17th, 2009 at 6:30 pmSeriously, you really want to go with this as a start? Really?
February 17th, 2009 at 6:31 pmDeuce Coupe Says:
“Newt’s suggestions sure seem to make sense verses the Obama plan that includes $ 30,000.000 for some mouse protection in California. How is that going to get me a job?”
All you have to do is apply. Go to Disney
February 17th, 2009 at 6:33 pmJobs.com and tell them you want to be a mouseketeer.
OUT OF IDEAS AND WHAT DOES GINGRICH PUSH? TAX CUTS FOR THE RICH!
ATTA BOY SNOOTY NEWTY……YOU JUST KEEP FLOGGING THAT DEAD HORSE AND THE FAILED EXTINCT POLICIES THAT GOT US HERE IN THE FIRST PLACE.
February 17th, 2009 at 6:36 pmNewt’s Contract On America and his tax cuts for the rich and the corporations are part of the problem not part of the solution. We need progressive taxation, not regressive taxation. The RepubliCons and their regressive taxation are a big part of the problem. Less taxes on the rich must be made up with more taxes on the poor and the middle class.
February 17th, 2009 at 6:43 pmWill our trolls please admit the ‘mouse’ story was a complete BS deal amplified by Limbaugh, o’reilly, beck, hannity, doocy, etc…? Can’t our trolls ever debate TP’rs on using facts and truth – instead of debunked GOP talking points (lies)? Leave the mice alone…..
February 17th, 2009 at 6:43 pmI just wish someone would puncture this assertion on national television.
Eliminate capital gains taxes, and eliminate the SSI cap on earnings. Hell, throw in elimination of the estate tax as well, but make sure they pay into the fund on every dollar earned, including their bonuses and stock options at time of purchase. Kill all the extraneous tax cuts, and just have everyone pay the same rate. Quit trying to use the tax code as a carrot-and-stick approach to government funding. It’s partly why we’re in this mess to begin with.
February 17th, 2009 at 6:44 pmOT – but talk about going back in time…
just found this:
Obama Poised to Reverse Bush’s Taliban-Like, Big Brother Stem Cell … U.S. News & World Report
http://www.usnews.com/blogs/erbe/2009/02/17/obama-poised-to-reverse-bushs-taliban-like-big-brother-stem-cell-policy.html
right on.
February 17th, 2009 at 6:44 pmYeah, you slimmy little lizard, let’s let the people who don’t work for a living make even more and contribute less to the country that made their old money family rich in the first place.
Repukes are slime…fcuk the Republicans.
February 17th, 2009 at 6:47 pmthe Irish corporate tax level, which is 12 and half percent.
not just that ireland is a much smaller country, but wouldn’t 12% be an INCREASE for many corps who pay nothing at all?
and what of the ones with offshore bases? again, nothing to the US.
pigs.
February 17th, 2009 at 6:48 pmJust a bit of political advice from a former, disgraced, run-out-of-town, ex-Speaker. That’s all.
February 17th, 2009 at 6:49 pmah hahaha… i think we need a “good one, stoopid” flag…
February 17th, 2009 at 6:54 pmi sure would tag #13 with it… lol.
Nevar Says:
Leftovers again… refried newt.
Wow. That’s strange. I didn’t read your post and both of us are using the same termonology. HAHAHAHAHAHA
So it is REFRIED NEWT.
February 17th, 2009 at 6:56 pmKaty – You are correct – There are no American Corps. that would pay 12%, or even 2% – why should they when their Pepperdine Law team can make it 0%, plus score some corprate welfare checks from their R buddies in DC?
America’s real welfare queens ride in jets, wear Prada, and play golf.
February 17th, 2009 at 6:58 pmThe republicans are little more than glengarry ad salesmen.
Repackaging old ideas, getting mileage out of tired sequels, bringing back the 50s sitcom. For all the hate the republicans heap on Hollywood, they sure borrow heavily from them.
Next: The hot new idea from the GOP Studio Heads…
“Titanic II” (Or, “Crimson Tidy Bowl”) Starring the warmed-over corpse of Ronnie Reagan and a cameo by Lincoln, digitally inserted on Rush Limbaugh’s body.
Ronnie stars as Capt. PNAC who attempts to wrest command of the ship of state from Capt. Obama and conquer his arch nemesis: the iceberg that sunk his previous command of a pricey luxury cruise; (starring the overpriced ship “Argonautica” from “Deep Rising!”).
After Capt. PNAC attempts to send a phony mayday, and Limbaugh’s character tries to steer the ship to the Dominican Republic, both are consigned, for the rest of the movie, to be pulled alongside the ship in a dingy while Limbaugh and Capt. PNAC proclaim, “I’m king of the world!”
Filmed in black and white….of course.
February 17th, 2009 at 6:58 pmFor the moronic trolls who keep bringing up the $30 million harvest mouse story, here is a link for you.
Please read the article and educate yourselves -even as I know conservatives are allergic to education, facts, and knowledge.
February 17th, 2009 at 7:01 pmRegardless of what the marginal rate is on Capital Gains, cost basis should be indexed to inflation via the CPI or some such measure. Paying taxes on inflation is a bad idea.
February 17th, 2009 at 7:04 pmDeuce Coupe Says:
Newt’s suggestions sure seem to make sense verses the Obama plan that includes $ 30,000.000 for some mouse protection in California. How is that going to get me a job?
Link please.
February 17th, 2009 at 7:05 pmuh-oh – I’m going to get moderated.
February 17th, 2009 at 7:05 pmGood ole Newt, still pushing his “Contract on America”.
February 17th, 2009 at 7:07 pmDeuce Coupe Says:
Newt’s suggestions sure seem to make sense verses the Obama plan that includes $ 30,000.000 for some mouse protection in California. How is that going to get me a job?
How is abolishing taxes on capital gains going to get you a job?
February 17th, 2009 at 7:11 pmSachem Says:
——————————————————————————–
Regardless of what the marginal rate is on Capital Gains, cost basis should be indexed to inflation via the CPI or some such measure. Paying taxes on inflation is a bad idea.
February 17th, 2009 at 7:04 pm
Yeah but Salamander Boy’s “new idea” is to eliminate taxes on capital gains , which is an even worse idea with a struggling economy and when the already wealthy are still reaping the benefits of Chimpy’s (undeserved and unnecessary) tax cuts for them………..
February 17th, 2009 at 7:11 pmAnd what are the similarities between 1995 and 2009 that Newter sees? These troglodytes are a one trick pony. Their ignorance is a big part of what is wrong today and it started in the 80s and 90s. Go away Newt, your girlfriend needs you.
February 17th, 2009 at 7:12 pmSince Newtie, Cheney, and Bush aren’t doing so hot these days, I hear the GOP will bring Reagan back from the dead to run one more time….Just what the party needs – a decomposing myth of manliness.
February 17th, 2009 at 7:13 pmWhen the stock market and real estate market go to hell, the capital gains tax is not a problem. Seems another republican needs a lesson in economics or accounting.
February 17th, 2009 at 7:15 pmLeave it to the GOP , and more specifically the twit who tried to shut down the US government in the ’90’s , to put a bow on a pile of shit and try to sell it as an adorable puppy ………………..
February 17th, 2009 at 7:16 pmLet’s break this down:
The Newtmeister: First, we have zero capital gains. We eliminate the capital gains tax, which is the same as China and Singapore.
Reality: Not much in capital gains this day, but even at that, why should those passive gains escape all taxation while labor from the sweat-of-the-brow workforce pay the bulk in taxes? Seems like that is bass-ackwards. If you didn’t work hard to earn it, tax the bejesus out of it. Don’t be so greedy.
The Newtmeister: Second, we go to the Irish corporate tax level, which is 12 and half percent.
Reality: Really? The Irish economy is in the dumpster, too, and was the first of the euro zone economies to go into recession last September. So why would doing what they do help us to improve?
The Newtmeister: And third, we make permanent eliminating the death tax, so that small businesses and family-owned businesses aren’t threatened by the IRS when somebody passes away.
Realty: Only a minuscule fraction of those who die actually pay any estate tax anyway. It is true that those that pay can pay quite a bit. That’s because they are super rich. Warren Buffet thinks the estate tax should be retained, and I think Warren is smarter than Newt. And besides, I don’t like the thought of being in the same tax bracket as Bill Gates and others who may more money in an hour than I make in a lifetime.
The do-away-with-the-estate-tax argument has long been an emotional red-herring for the GOP. Only the very wealthiest will ever by bothered by it so they are the only ones that will ever truly benefit from it. And haven’t they had enough breaks all the time? Eliminating the estate tax is another tactic to further concentrate wealth into a very small group of individuals who have already benefited from the greatest and fastest concentration and control of the nation’s wealth in our nation’s history.
Go away, Newt.
February 17th, 2009 at 7:30 pmNewt the Used Car Salesman. What an irrelevant pig. Anyone interested in my take on the entire global bankster conspiracy would do well some time poking around here:
http://oxdown.firedoglake.com/diary/author/7251
GHW Bush is revealed as the culprit in the US, which money laundering as the key.
February 17th, 2009 at 7:30 pmIt’s almost like a homeopathic approach to public policy, except that rather than diluting the cause, they want it straight from the tap.
Hair of the dog?
The problem with “supply-side” economics is that even if you accept the pablum that it encourages investment, it does nothing to encourage investment in the real economy. The result is an economy focused on only the most fungible of assets and on instruments designed to limit (i.e., redistribute) risk.
Because these strategies also make speculative investment the most profitable, all productive assets (both financial and human capital) move there. Think of it as a “Dutch Disease” of investment capital.
February 17th, 2009 at 7:34 pmJust like culottes (those ugly knee-length skirt pant things) someone keeps trying to bring Newt back into fashion. WE’RE JUST NOT HAVING IT!
February 17th, 2009 at 7:41 pmI agree with Newt, dead people shouldn’t have to pay taxes. Everyone else should pay one dollar out of every ten dollars they make in profit. But if you profit because someone else dies, it goes to 2 dollars since you didn’t make the money, someone else did.
There, problem solved.
February 17th, 2009 at 7:43 pmHey, doesn’t this sound like our idiot Kelso?
Kelso
Yeah,
Jerry Seinfeld, I suppose if I had multi – millions from a sitcom I could quit my job too. However; I have a mortgage, wife, kids and a savings account, needless to say, I don’t have millions packed away for a rainy day.
As for retirement, I watch it inch further and further away daily. I suppose nothing will matter, if these ridiculous bailouts continue, since the Green Back will be worth absolutely nothing! My retirement plan equals, moving to the mountains with a tent, 2 hogs and planting a garden. Fincances, jobs and the internet will be pointless by the time Fiscal Accountability 101 (Bailout Mania) is over.
February 17th, 2009 at 7:51 pmDead people don’t pay taxes. Once a person is dead all their assets and debts are put into something called an “estate”. The estate is in a very interesting legal position. If it is insolvent it doesn’t even have to pay any of its debts! If it has more assets than debts then the assets are given tax free to the beneficiaries. If the estate is of sufficient size then the “estate tax” is assessed against it.
Why call it the “estate tax” and not the “death tax”? Because ESTATES pay it, damn it. The tax is assessed against the estate, not against the deceased. We speak English in this country not whatever language Newt and his cronies do.
February 17th, 2009 at 7:56 pmObviously #13, if millions are being given to protect mice in California then go get a job protecting the damn mice! Urgh. Even if you think the stimulus is stupid the job potential is clear!
February 17th, 2009 at 7:58 pmAs if there are going to be any capital *gains* anytime soon. What a putz.
February 17th, 2009 at 8:03 pmCaption Contest:
“Heehee, nothing says lovin’ like something leftover in the oven – heeheeee!”
February 17th, 2009 at 8:09 pmRepublicans do not value the truth.
And, note to Bill-O, I said “truth”, not “troops”.
As far as Republicans are concerned, both sides of any argument carry equal weight, and who’s “right” is a matter of who more people believe. The actual truth is irrelevant to them. If you believe something (no matter how false it is) and it supports the argument you are making, then (they feel) you are just as “right” (correct) as the person who has facts on his side.
This is a consequence of the idea that there has to be “balance” on the discussion programs, that there has to be someone from the left and someone from the right. I’ve seen some talk show hosts express dismay that their ideological-opposed guests agreed on something.
We should all demand that whoever goes on a political talk show tell the truth, and that the hosts rip them apart when they don’t.
While you can sometimes trust Democrats (but not always), you can never trust a Republican. Because a Republican has absolutely no problem lying to you to get your support.
February 17th, 2009 at 8:12 pmRepuBillys, Read my Lips:
Your thug regime had 8 years with all 3 branches of government for 6 years and went full bore to totally force the “policies” they wanted non-stop, fast as possible, as secretive as possible.
Anyone with a shred of awareness confirms the historically disastrous results from the RepubliCON savage “attack and awe” on the American middle class and economy
or you would have to be completely ditto-brain dead to deny any of it?
In the Leadership Paradigm of Lead, Follow, or Get Out of the Way…
It is long overdue for y’all to finally Get Out of the Way!!
And “Just Say No” to obvious Obstructionism and actually blocking the path for help to reach your own suffering devastated constituents!
That’s not Progress, that’s just completely Republi-Tarded
February 17th, 2009 at 8:14 pmGenerally speaking, I dislike Newt Gingrich intensely (because of his love for lying.) But I did enjoy his performance as the Sta-Puff Marshmallow Man in “Ghostbusters”.
February 17th, 2009 at 8:15 pmI thought the Newter was run out of Congress on a rail for cheating on his second wife with his assistant while going after Clinton for getting a hum job. Why is Newter on this page and on television. They guy is a digrace and a failure.
February 17th, 2009 at 8:16 pmWhen Newt becomes a public and influencial figure rather that the state reptile of Georgia, he can offer stimulus suggestions.
February 17th, 2009 at 8:17 pmThat was Newt?!?
I had no idea he had that kind of talent.
February 17th, 2009 at 8:24 pmWell, ralph, he did burn up in flames real good. :)
February 17th, 2009 at 8:32 pmkasinca Says:
I thought the Newter was run out of Congress on a rail for cheating on his second wife with his assistant while going after Clinton for getting a hum job. Why is Newter on this page and on television. They guy is a digrace and a failure.
February 17th, 2009 at 8:16 pm
No, it was after that. He resigned because of the poor showing of the Republicans in the ‘98 midterms.
February 17th, 2009 at 8:34 pmOh, I’m gonna enjoy the final scene in Ghostbusters on a whole ‘nother level now.
February 17th, 2009 at 8:34 pmThe only transparency RepuBillys have offered in the past 8 years and today is how obviously derelict of morals and honesty, deranged with greed and selfish motives, corrupt and willing to throw their constituents and all Americans into a full Depression by proudly blocking the American Recovery and ReInvestment Package!
They are transparent when they call funds and projects for American “Pork” after years of gleeful cackling like hyenias over read meat with $100s of Billions in “War spending” that never funded any War..!?
They funded welfare for the wealthy with rewards, tax breaks and $Trillions for corporations and the wealthiest by lying delusional promises of “Oil company profit will fund new Energy Solutions for America” (which proved to be totally lies) and promises of “the Wealthy will create companies and jobs for you” (which proved to be totally lies) – jobs were being removed from America and the economy in plane loads by the millions!
So after 8 years of RepuBillys and over $6 Trillion (generational-theft) in added deficit with NO Jobs, No Infrastructure, No HealthCare, No direct value or improvement for America, Nothing to show for it
February 17th, 2009 at 8:36 pm- How can you deny that RepubliCONS pulled the BIG “Enron” on America after the drunk Cowboy practiced first with Pal Ken Lay..!?
Hey Newt…crawl back under that f ucking rock.
February 17th, 2009 at 8:50 pmIs that Samwise Gamgee’s dad?
February 17th, 2009 at 9:33 pm#15 Fred, did you not hear Obama state those words in today’s speech? Play it back on CSPAN.
Did you not read the second paragraph of my post? For information on the Stimulus PEU provision click on the link below:
http://online.wsj.com/article/SB123310671578422199.html?mod=googlenews_wsj
PEU= Private equity underwriter
February 17th, 2009 at 10:59 pmSomebody tell Newter that he may as well be as dead as Ronnie Reagun cause he is not in congress anymore. Newter is a non-entity and a philanderer and cheater.
February 17th, 2009 at 11:34 pmNot even Herbert Hoover went that far. Newt would rack up trillion dollar deficits for as far as the eye could see without massive spending cuts. When the bottom drops out of demand jobs would be cut by the millions. This is a death wish for America’s economy that Newt is pushing.
February 18th, 2009 at 12:03 am.
What’s old is what’s new, again…
… NO?
But really, what’s new about a former Speaker of the House…
… Especially one who laments that America has not been attacked again?
Q U E S T I O N:
What credibility does one gain for wishing his own Country was attacked? What relevance should this kind of person play in politics? What side does one stand for if what they wished for is that their own Country was attacked? What respect must one have to wish fellow countrywo/men and their children be put at risk?
http://www.dailymotion.com/video/x5lmje_newt-gingrich-bush-should-allow-rem_news
… And none dared called it TREASON!
.
February 18th, 2009 at 1:06 amHow about Newt volunteer to help the poor?
He could join the military and defend his country since he has all this time on his hands between the Hannity show and meeting with Ann Coulter.
February 18th, 2009 at 1:35 amThis is the GOP’s “man of ideas” (the MSM call Gingrinch this all the time).
If this is the best they can muster, no wonder they’re in the minority.
February 18th, 2009 at 1:46 amNewt…time to retire and fade away. All your brilliant ideas trashed the nation. Say goodbye Newtie.
February 18th, 2009 at 5:22 amNewt is such a has-been. Just another repeat, regressive Republican. The goopers have no new ideas and nothing new to offer.
February 18th, 2009 at 8:08 amThe life story of Newton Leroy Gingrich…
February 18th, 2009 at 8:11 amThis video of Newter wishing that America would have been attacked more (to make us appreciate not being attacked) even drew an enormous gasp from his confused followers
http://www.dailymotion.com/ video/ x5lmje_newt-gingrich-bush-should-allow-rem_news
The truth is that attackers against America like Newter who constantly prove how much they disregard and hate Americans makes all us appreciate Democrats protecting them from the real Terrorists to America – NeoCon NutJobs like Newter
February 18th, 2009 at 8:33 amFunny, I didn’t know that there was a period in modern American history in which the capital gains tax was suspended. I guess that does make it NEW. Washington actually eliminating a tax wouldn’t just be NEW, it would also be BOLD. I guess Newt is right, it would be new and bold. Now people would have the opportunity to keep ALL of what they save. This would provided INCENTIVE to invest in the companies that are struggling right now. There would even be money available for LENDING. Wow, Newt actually understands econ 101, too bad nobody posting here does. Someone above actually stated that 401K investors are in tax deferred plans. Hey, genius, you pay tax going in or coming out, No one gets away for free. As an EVIL rich person who actually receives income from dividends, 401 K distributions and real estate, I pay the taxes when I receive my disbursements or when I file my taxes. No one gets away from paying taxes. Well, maybe Tim Geithner, the most brilliant economist of our time;)
February 18th, 2009 at 9:37 ammorning drew3rd
February 18th, 2009 at 9:45 amDumb Question: which segment of the economy will gain the most by a removal of cap gains ? the minimum wage worker or the person making more than $ 100,000 ?????
Not to mention that stocks (where a lot of retirement funds are tied up), haven’t made a whole lot of money lately and therefore the amount of cap gains on these stocks isn’t going to be a lot till the economy recovers.
February 18th, 2009 at 10:32 amMaple, you raise a reasonable question. I am rich now, but I began my 401K in 1985, when I turned 18, earning $22,000 per year. I began by contributing $44.00 per week. Now as I made more money I contributed to other funds, bought real estate and commodities. The point is, the majority of investors are not making $100,000 per year. It’s closer to $40,000 per year. They are starting out as I did.
You are correct, however, in pointing out the state of the market. The question is then, what do I invest in? Shouldn’t we encourage people to figure that out for themselves? I have moved into guaranteed mutuals. I’m only earning 6%, but it’s guaranteeed. Others will have better ideas and we can all look at that. I don’t know about you, but not having to think of the penalty for investing makes the risk taking more worthwhile. At this point, we NEED more Americans willing to pump money back into the economy. Many companies are doing extremely well right now. People are just afraid to invest. Remove 25% taxation of those assets and people don’t have to worry about a 1/4 of their projected income coming off the top.
That’s how I think as an investor. Most investors think the same way. They work hard for their money. The last thing they want to do is give it away to some Wall Street criminal or ACORN.
February 18th, 2009 at 10:44 amI’m sorry drew3rd, but your young Republicans tutorial is oversimplified, to say the least.
Please click on any of the articles links above for rebuttals to the ideas against the capital gains tax. I would like you answer why:
when capital gains taxes were lowered in 1981 that economic growth did not match conservative expectations. or again in 2001, and CURIOUSLY more growth in a period following 1993 when they were re-instated. There could be other factors, and I’d like to see what you think those are, because the proof is in the pudding and the pudding doesn’t look too good.
Also, it is a fact that rich people divert income to capital gains for less taxation. Why are they not subject to taxation as any little guy? Why would we want a 0% free for all?
Also- volatility of a 0% capital gains tax in the market is a no-brainer. You said so yourself that people would take more risk, and its risk with its ensuing indiscretions that are part of the mess we’re in. Your tutorial to Maple is in some vacuum where the reality of greed and corruption doesn’t exist. I do believe you are locked into Econ 101 with no other classes to round out your education. The dig at ACORN being the final nail in the coffin, which shows that you eat up conservative talking points with no critical eye whatsoever. Good day.
February 18th, 2009 at 2:39 pmHi Drew3rd – Admittedly, there are a lot of retirees with funds in the market – more likely indirectly in the market with indexed funds. Admittedly some of those will pay capital gains taxes. But I’d say that at $ 40,000 a year, you are definitely on the low side of paying this and even somewhat unusual in your income bracket.
Even at that, you’re proving my point as I just mentioned $ 100k as it had nice round numbers. If you graph out the results per income bracket (see the Congressional Budget Office reports on cap gains), it still comes out that removing the cap gains tax will benefit the higher income groups more.
Now if we were talking something to the tune of cap gains would not kick in until they hit a specified level, we might be easier to come to an agreement. Same way the inheritence tax doesn’t kick in on the lower incomes.
February 18th, 2009 at 3:25 pmHe already got of the sick wife as well as the healthier one who replaced her. I think Newt is better at getting new wives than at new ideas.
Zooey Says:
——
Doesn’t he have a sick wife to cheat on and divorce?
February 19th, 2009 at 9:51 am