Capital Gains (environment, income, jobs)

[msvegas58]

Question : Would the elimination of the capital gains tax be good for our economy, or would it create an environment of inflation and economic slowdown ?

[LAAngel2008]

Money in the hands of the people is always better than in the hands of wasteful politicians. When taxes are cut the money is spent in the economy which creates jobs and prosperity for everyone.

[kettlepot]

Elimination of the Capital Gains tax would not cause inflation. It would cause an economic slowdown, and some economic dislocation. And over time, decade or more overall economic growth and personal income growth would be lower.

[Niners fan]

kettlepot, how would eliminating the capital gains tax cause an economic slowdown in the future? cutting taxes stimulates the economy by leaving more money in the hands of people who can choose to spend it or save it. either way the economy benefits from that. taxes take money out of the hands of the people who created the wealth in the first place. and while some tax revenue is necessary, lower tax rates are the better for consumers.

[kettlepot]

Oops, I misread the question.

Somehow I got it into my head that the questioner was asking about the elimination of the special lower capital gains rate, and reverting to the taxation of capital gains at the standard rate for income, not the elimination of ALL taxation on capital gains.

[Ben Screwed]

Just like the story Field of Dreams ,Build it and they will come! Give the people back some of their money and they will spend it . Dosen't that make abetter difference than taxing the people to the point that they loose all that they have worked soo hard to get. it that not better for whole econominity? , God knowes they can't save anything with the cost of food and housing today and everything else nessesary today.