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I don't particularly care for the CATO institute, but the Congressional Research Service has some nice reports on it.
Some guy at Ohio State did a study showing the optimal Capital Gains Tax Rate is 9.69%.
Lowering the rate below 9.69% does not increase Capital Gains revenues, but increasing the rate above 10% results in lost revenues for government.
There's another thread on Capital Gains Tax rates, and if I remember what I said, just doing a ball-park estimate, the US lost about $3 TRILLION to $5 TRILLION in tax revenues from the time Bush the Elder raised the rate until Bush the Younger lowered it again.
Oh, another, the CBO report from October 2002 on Capital Gains and Federal Revenues.
Honestly, I'm just stupefied.
The data is all right there, plain as day for everyone to see. Raise the Capital Gains Tax rate and you lose federal tax revenues; lower the rate, and revenues increase. How stupid are those people?
That would all be very fascinating if it was even remotely relevant.
Wages were flat.
None of you even understands the arguments.
By raising the rate, you just lost $200 Billion to $300 Billion in revenues annually -- and what will that do for the budget deficit? No change, or the deficit increases, which means the National Debt increases.
This phenomenon is not limited to the US. It has been observed in every country that utilizes a Capital Gains Tax.
Even the damn Italians are smart enough to set the rate at 12.5%.
This is the right answer here...
Capitally...
Mircea
Oh look another post by Mircea who can only respond to arguements by editing them to say Blah blah blah.
It is a GOP myth to say you lose revunue by raising rates. Clinton should have dispelled that with the Omnibus Budget reconcilation act of 1993, but the right seems to cling to their bad economics like a religious zealot.
The answer should be obvious from the fact that the highest rates are in the healthest economies of Northern Europe, Germany is kicking everyone's ass and subsiding all of Europe with a rate of 25% and the Nordic states, where the economy is strong, have even higher rates.
It is the flagging economies that can never seem to raise enough revenue like Greece, or the tax havens, that have the low rates
Last edited by Randomstudent; 01-15-2013 at 08:28 PM..
I'm writing a contract for a guy that bought some land at a tax sale for $235,000 cash. My contract is for $2,000,000 He was concerned his tax rate was rising. Here are the numbers
2,000,000 - $235,000 = 1,765,000 taxed at 15% = 264,750
taxed at 23.8% = 420,070 for a difference of $155,320
So the poor thing is going to profit only $1,344,930 or 572% I just don't know how he will make ends meet.
Increasing the dividend rate is an incentive for a one time cash payout, because of the rate change. However after that it becomes more difficult to get money out of a C corp. Thus there is a higher incentive to re-invest rather then pay dividends. On the other hand with low dividend rates people want to take as much out of the company as humanly possible particularly if they suspect dividend rates are subject to increase. In fact the best thing you can do to encourage long term investment is have a super high dividend tax and stepped up basis.
Ireland and Bermuda do have corporate entities, but only because there is no serious tax legislation or enforcement to deal with tax havens.
Additionally, the net revenue always increased generally except for 2000-2007, but if you adjust for inflation population growth and the business cycle it increased at a slower rate with reduced taxes.
I am confused, are you agreeing or disagreeing with the fact that we should lower the tax rate in an effort to bring in additional revenue? It has been proven that raising capital gains tax rates decreases investing, and decreases tax revenue.
Quote:
Originally Posted by Roadking2003
Correct, and they always consider taxes when deciding where to invest or where to locate operations. It's interesting that some countries have ZERO tax on capital gains.
And I also assume that someone such as randomstudent has no idea what a double irish double dutch sandwich is.
I say let the rates increase. If conservatives are correct, we will see investors pull their money from businesses, stocks and investments. In which case, the national economy will continue to tank, or even accelerate into the crapper. If liberals are right, the economy will be unaffected and the government will have greater revenue.Run the experiment and see what happens once and for all. If the economy craps, it will be an education for the American voter...one they sorely need.
I'm writing a contract for a guy that bought some land at a tax sale for $235,000 cash. My contract is for $2,000,000 He was concerned his tax rate was rising. Here are the numbers
2,000,000 - $235,000 = 1,765,000 taxed at 15% = 264,750
taxed at 23.8% = 420,070 for a difference of $155,320
So the poor thing is going to profit only $1,344,930 or 572% I just don't know how he will make ends meet.
What does whether or not he can make ends meet have anything to do with what is a fair tax rate?
The answer should be obvious from the fact that the highest rates are in the healthest economies of Northern Europe, Germany is kicking everyone's ass and subsiding all of Europe with a rate of 25% and the Nordic states, where the economy is strong, have even higher rates.
It is the flagging economies that can never seem to raise enough revenue like Greece, or the tax havens, that have the low rates
So are all of these zero capital gains tax countries "flagging economies?"
Belgium 0%
Luxemburg 0%
Netherlands 0%
South Korea 0%
Switzerland 0%
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