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When capital gains are first cut it causes a (temporary) increase in revenues. But this increase has nothing to do with increased business, a better economy, or economics. Rather low capital gains rates cause people to cash in their capital gains.
Example. If you had capital gains investments and presently there was a 20% tax rate on them, but in 2 months from now the rate would fall to 15%. Would you cash them in now, or wait 2 months till the rate drops?
Every sentence that contains the word "experts agree" is a lie. No exceptions.
For one, experts never agree, and two, anyone using that as an argument has already had to use the "appeal to authority" fallacy, which means they have had to resort to fallacy, rather than truth, to make their argument.
And no, capital gains reductions DO NOT reduce revenue over the long term.
Why? Because reductions in cap gains taxes result in more investment / divestment, and capital flow. Anything you tax is decreased in activity. Thus, "rich people" camp on their money without investing it, because the act of investment is punished.
Thus, the economy shrinks, we are starved for risk capital, and overall revenues FALL.
Because Obama tried to make CEO's pay their fair share of taxes, and the republicans in congress stopped him. The republicans in Washington protect the CEO's low tax rates, just like the republicans in this forum do.
We have a middle class US soldier forum member in this thread being punished with a 30% tax rate. But all the republicans here use spin and manipulation to forget about him, and then they come in with a bum rush to protect the CEO's low tax rates.
Chad.
This is 100% a lie.
CEO's are taxed precisely the same as everyone else.
I'm neither dumb nor poor, Donn. Seeing as you are from Apple Valley (a place I'm very familiar with), I'd be very surprised if you made more money than I do. I'd just like to see the wealthiest people pay the same tax rate I do. That doesn't make me "dumb" -- that makes me sensible.
And why should the CEO's who just sent America's high paying manufacturing jobs to Asia have 14% tax rates, while my cousin who creates jobs in America has a 39% tax rate?
CEO's are taxed precisely the same as anyone else.
That's why we need to make CEO's pay their fair share of taxes.
The "Buffet Rule" which would make CEO's pay 30% tax rates, would generate around $45 billion dollars a year in extra tax revenues. That $45 billion dollars could be used to give Americans paying high tax rates some relief.
I neither hate the player nor the game. I'd just like to change the rules so that capital gains, the primary source of income for the wealthiest people, was taxed at a higher rate so the wealthiest citizens pay about double the rate they're paying now. I'd like to see the wealthiest paying the same rate as the middle class. I don't think that's unreasonable.
I don't disagree at all. The fact of the matter is, our federal government wants to treat the tax code like a voodoo doll. That means they create tax breaks for an insanely long list of things. There are lower tax rates for doing certain things -- and the list of those things is also insanely long.
Better idea: Scrap all of this "tax breaks for ergonomic toilet seats at truck stops" idiocy. Fair tax means everyone pays taxes no matter what. Adding in a luxury tax for items that only the obscenely wealthy can afford means they pay more taxes. And tax evasion would be virtually impossible. How do you avoid sales tax? Offshore accounts in the Caribbean or Switzerland won't help you there because you only get taxed when you actually spend money.
It may not be the end-all-beat-all solution, but I think it works better for individual taxes. Right now, our tax system is so complex that we have an entire industry (a massive one too) built on trying to make sense out of it all. That creates a world where the wealthiest of Americans will always come out ahead, just as we see with Romney paying about 14% on his estimated $21 million annual income, and doing so 100% legally. Romney is a small fry in that whole game. Bigger players can and do come out paying even lower tax rates.
Like I said, don't hate the player, hate the game. If you hate the game thenadvocate for changing the game. The current game is stacked against regular middle-class workers because it is insanely complex. So the solution is to make taxes as simple as humanly possible. Ain't rocket science.
Every sentence that contains the word "experts agree" is a lie. No exceptions.
For one, experts never agree, and two, anyone using that as an argument has already had to use the "appeal to authority" fallacy, which means they have had to resort to fallacy, rather than truth, to make their argument.
And no, capital gains reductions DO NOT reduce revenue over the long term.
Why? Because reductions in cap gains taxes result in more investment / divestment, and capital flow. Anything you tax is decreased in activity. Thus, "rich people" camp on their money without investing it, because the act of investment is punished.
Thus, the economy shrinks, we are starved for risk capital, and overall revenues FALL.
"Experts agree" that smoking causes cancer, "Experts agree" that exercise with a low calorie diet will make you loose weight, and "experts agree" tax cuts do not increase government revenues.
The following Forbes source asked the IGM Forum (America's most respected economists) whether or not tax cuts increased revenues, and all the experts agreed "tax cuts do not increase revenues." A Tax Cut Won't Increase Revenue - Forbes
That's why we need to make CEO's pay their fair share of taxes.
The "Buffet Rule" which would make CEO's pay 30% tax rates, would generate around $45 billion dollars a year in extra tax revenues. That $45 billion dollars could be used to give Americans paying high tax rates some relief.
I don't disagree at all. The fact of the matter is, our federal government wants to treat the tax code like a voodoo doll. That means they create tax breaks for an insanely long list of things. There are lower tax rates for doing certain things -- and the list of those things is also insanely long.
Better idea: Scrap all of this "tax breaks for ergonomic toilet seats at truck stops" idiocy. Fair tax means everyone pays taxes no matter what. Adding in a luxury tax for items that only the obscenely wealthy can afford means they pay more taxes. And tax evasion would be virtually impossible. How do you avoid sales tax? Offshore accounts in the Caribbean or Switzerland won't help you there because you only get taxed when you actually spend money.
It may not be the end-all-beat-all solution, but I think it works better for individual taxes. Right now, our tax system is so complex that we have an entire industry (a massive one too) built on trying to make sense out of it all. That creates a world where the wealthiest of Americans will always come out ahead, just as we see with Romney paying about 14% on his estimated $21 million annual income, and doing so 100% legally. Romney is a small fry in that whole game. Bigger players can and do come out paying even lower tax rates.
Like I said, don't hate the player, hate the game. If you hate the game thenadvocate for changing the game. The current game is stacked against regular middle-class workers because it is insanely complex. So the solution is to make taxes as simple as humanly possible. Ain't rocket science.
The Flat Tax plan was created by corporate think tanks. These think tanks want to abolish the EPA and FDA, because those agencies regulate and fine large corporations. And abolishing the IRS is part of their plan to abolish all agencies that fine and regulate large corporations.
The Flat Tax will also greatly decrease government revenues, and create a criminal like tax evasion atmosphere as this Forbes source explains. Why The Fair Tax Will Fail - Forbes
The above source speaks of a Flat Tax used in Europe that could actually work, but the Europeans system regulates corporations, and I doubt the CEO's who control the republican party would want any part of the EU Flat Tax system.
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