Marketwatch is so in the tank for Obama and the democrats. Anybody who takes their investment advise seriously will end up on food stamps.
That’s the plan.
Gold intentionally left out the long term Capital Gains tax rate was cut to 20% in 1997 that led to a huge amount of cash freed up as investors sold and reinvested which created jobs and also tax revenues.
His article is fundamentally flawed leaving out such a huge part of the Clinton tax structure in the 90s that is has no credibility.
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Mr. Gold says that cutting marginal tax rates on the wealthy does not cause them to work “harder.” But how does he measure this? Most upper-income people are already working full time (or overtime), so of course they cannot work longer hours. However, they can start new enterprises, and they have more to invest, when their tax load is reduced.
Investment by individuals is done through the market process, and is thus more efficient that government “investment” or the results of “targeted tax cuts.”
It is efficient investment which improves the economy. Heavier taxation merely destroys potential capital, or misapplies it (which amounts to the same thing).
Always remember the fundamentals: capital is tools. People with tools multiply the results of their efforts. People with labor alone (bare hands!) can barely survive. Indeed, in most places, and at most times in history, people without tools starve and die out; or they may be enslaved by their neighbors.
One thing which distinguishes humans from animals is that humans have and use capital. Taxes limit and destroy capital. Income taxes, corporate taxes, and inheritance taxes are systematic handicaps to an economy.
They really are. They counsel against buying gold when balance sheets have tripled. Now they think that high taxes promote economic growth. Wow. They might as well say that going to prison builds character. These guys just want us all to put all our money in stupid stocks like Facebook, so that the insiders can short us.