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Pathetic to add ANOtHER 3.8% tax on capital gains or dividends just to support Obamacare. These are funds people count on to live on. So, once again, the very people that get the least from our government are the ones that pay the most to support it. Now, if you wanted to be fair, we'd put a tax on welfare payments and Medicare benefits.
What was the rate before this proposed rate increase? What is the total rate for your bracket?
We cut FICA and all they did was spend it and "consume". They didn't save.
But we cut cap gains taxes and all they did was consume. They didn't save either.
IMO the takeaway is that tax policy doesn't influence the average person's financial decisions as much as our arguments here might suggest.
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That became obvious when the FICA was reinstated and stores reported lower sales for a month or two.
Walmart was one of the bigger losers when the FICA went back.
Well I agree, the majority of FICA cuts are going to be spent. And the majority of cap gains cuts are going to be invested into the stock and bond markets.
The difference is that the majority of cap gains cuts get distributed among a smaller number of people who are disproportionately wealthy.
Now, if your goal is to simply have more expensive stock markets, with higher P/E ratios, then maybe this type of tax cut is what you want. I'm not personally convinced that the stock market's performance leads to new American jobs, or higher wages for American workers, or really anything that benefits the bulk of working Americans. Arguably, these people would benefit from a cheaper stock market that would allow them to buy more shares for less money.
Well, I agree, but that raises the question: How do you encourage people to save, and obtain wealth?
I'd argue that preferential capital gains taxes play a minimal role in whether the common person saves or not. I'd wager that most people don't even know that there's a difference. I think you can look at cap gains tax rates over the years, and the national savings rate, and you can see that the two aren't related.
I'd argue that if you cut wage taxes, it would give Americans more income to save, and that will have the biggest impact.
You encourage people to save and botain wealth the only way government can, which is through the tax policies.
Even dear ruler himself said its has issues. The dems are now seeing the disaster this is. I hope every republican sits back and says this is your mess dems, we are staying out of it unless its to repeal it.
You encourage people to save and botain wealth the only way government can, which is through the tax policies.
I'd argue that the government's monetary policy (both interest rate policy, and the basic design of the Federal Reserve + private banking system) has a bigger impact on peoples' savings rates than tax policy.
For instance, say we increased interest rates and eliminated FICA at the same time -- people would suddenly have more wages to invest , AND they'd get a higher return on their savings, and you'd see a decline in asset prices to allow the median worker to buy more with the same amount of cash.
I'd argue that the government's monetary policy (both interest rate policy, and the basic design of the Federal Reserve + private banking system) has a bigger impact on peoples' savings rates than tax policy.
monetary policies have an impact on the value of the dollar, not what people do with the dollars they already have.
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Originally Posted by le roi
For instance, say we increased interest rates and eliminated FICA at the same time -- people would suddenly have more wages to invest , AND they'd get a higher return on their savings, and you'd see a decline in asset prices to allow the median worker to buy more with the same amount of cash.
no, if you increase interest rates then people will have less money because people carry mortgages and dont pay cash for cars..
As for the elimination of FICA, the government cant do that because they needed the tens of trillions of dollars to spend, and if people arent contributing to FICA then taxes would need raised to offset them regardless.
Pathetic to add ANOtHER 3.8% tax on capital gains or dividends just to support Obamacare. These are funds people count on to live on. So, once again, the very people that get the least from our government are the ones that pay the most to support it. Now, if you wanted to be fair, we'd put a tax on welfare payments and Medicare benefits.
Actually the capital gains rate wasn't raised enough. It should be taxed at the same rate as ordinary income.
There is nothing wrong with society's winners paying for the less fortunate. When the poor have Heath care they are less likely to spread illnesses to others -- so even the selfish benefit.
The less fortunate? Why are they less fortunate, because they decided to be lazy, stick needles in their arms, bought into the "you are owed" attitude. MTAtech, why do you fight so hard for welfare? You must be one of them.
Any poster who calls the duly elected President of the United States a "socialist turd" has absolutrely no credibility to even post in a general internet forum. You should go back to your "hate" forums or crawl back under your rock. Any meaningful dialogue is completely negated with your first three words. Reviewing your post history, you have yet to post any meaningful thread in this forum.
And you are one of those people who is naive enough to believe that this can not happen in the U.S.
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