If we cut captial gains tax to 0% dropped the top tax bracket to 15% will it create jobs? (withholding, foreclosure)

[Majin]

Lets say in 2012 Rick Perry wins and the first thing he does is cut the capital gains, estate tax to 0%, eliminate the corporate tax, and cuts the top marginal tax bracket to 15% will it unleash the economic engine of the private sector that will rain down prosperity for all? Will it create a massive flood of private sector jobs that will significantly reduce unemployment?

[2018]

Rick Perry cannot do any of those things. Congress can.

There might be some short-term job creation, at least partially offset by government cuts. Long-term, I think we have to return to a lower standard of living and there's nothing the government can do about that either way.

[Philip T]

No, but I think the coming campaigners will unleash an unlimited flood of jargon bullsh1t to drown US . . .

a sample . . . .

Originally Posted by Majin

. . . unleash the economic engine of the private sector that will rain down prosperity for all . . .

Just add in some phrases about "World Class" and "Global Market" and I think you might have it. Oh wait a second -- those were yesterday's economic failures.

hmmm, check notes, check notes . . .

Energy Independence . . . hmm, no. umm

Got It! Shovel Ready Jobs! [mumble under breath -- Shoveling Bullsh1t, that is]

Ahhh -- Here is a Oldie but a Goodie -- A Chicken In Every Pot!


Real Deal, Majin, until and unless the US working slobs figure out who is screwing them/US and move to stop it, all the Bullsh1t in the world is not going to stop it.

[Malloric]

Yes, it would create jobs. The question is at what expense. We can't afford roads, the military, public safety and the other "essentials" the GOP likes to spend money on as is. If the GOP solution continues to be borrow money without a care in the world... I don't know. The damage might out weight the cost. If, however, they are willing to cut military spending in half, get rid of homeland security, stop all foreign aid, eliminate all corporate welfare and tax shelters.... Yes, it would create jobs. I wouldn't want to be in the lower half of the income bracket in a land with no social welfare system. Then again, I'm not in the lower half so it wouldn't be too bad aside from the crime wave that would follow.

[Nor'Eastah]

Look, this country is mired in debt. Debt on leverage. Until they allow the market to cleanse itself of debt, to deleverage, we're not going to come out of this. Of course it is virtually impossible for any politician or party to allow this (career-ending). So they kick the can down the road a bit, then when no one is looking, it will happen anyway. Can't be stopped.

That is when Malloric's scenario plays out...rioting, looting, criminal activity across the countryside. Hard to wrap our minds around the fact that many people in this country, in many countries, have never worked a day in their lives. They have always lived on government largess. That is in the process of coming to an end. That can't be stopped, either.

So, while tax breaks would appeal to me and to many other working folk, they would not turn this economy around. Wrong treatment. That's like giving insulin to someone with bronchitis...good try, wrong medicine. What needs to be addressed is the debt, the monetary system. That is what will take the food stamps out of the hands of the hungry. That is what will make things ugly for a few months until everyone figures out that the future is not the past.

IMHO.

[Nor'Eastah]

P.S. If any white candidate wins in 2012, we will probably see race riots unlike anything this country has ever experienced. My prediction.

[stevej64]

If the govt allowed a one time withdrawl tax free from your 401k,403b etc.to buy a house I think help housing market.Houses would stop losing value people will stay in their homes less foreclosures.

[gwynedd1]

Originally Posted by Majin

Lets say in 2012 Rick Perry wins and the first thing he does is cut the capital gains, estate tax to 0%, eliminate the corporate tax, and cuts the top marginal tax bracket to 15% will it unleash the economic engine of the private sector that will rain down prosperity for all? Will it create a massive flood of private sector jobs that will significantly reduce unemployment?

Hi Majin,

Trickle down economics actually works, when say there is lots of inflation, egregious amounts of consumption, and a shortage of capital. Investing is easy when you sell out 100 seats in the theater every night. Capital will come a running to build more seats.

That doesn't read like today's newspaper. There are 5 people in the theater, and the capital on the sidelines isn't so sure investing in fluffier cushions is going to attract more business for the cost. People probably just can't afford to sit on a splinter.

The tax to put on holiday is social security withholding which is the most likely to target existing capital instead of encouraging new capital which is a joke.

Of course both demand side economics and supply side economics have been discredited.

Supply side economics was discredited by events like Katrina proving that more water is ineffective in raising standards of living.

Demand side economics was discredited when they passed out water coupons during the summer in Arizona. For some reason the price went up.

Thus when I argue for either, I will be wrong in someone's camp who is religiously beholden to one way street economics.

[bradykp]

no

[CaptainNJ]

Originally Posted by Majin

Lets say in 2012 Rick Perry wins and the first thing he does is cut the capital gains, estate tax to 0%, eliminate the corporate tax, and cuts the top marginal tax bracket to 15% will it unleash the economic engine of the private sector that will rain down prosperity for all? Will it create a massive flood of private sector jobs that will significantly reduce unemployment?

the estate tax should be 0, capital gains should probably be the same as income (which should be lower). everything should just be low and flat and permanent.