Posted on 01/22/2008 5:29:53 AM PST by Perdogg
PERMANENT MARGINAL INCOME AND CAPITAL GAINS TAX RATE CUTS.
Productivity growth is what counts for economic growth. You can get productivity growth by lowering the penalties (taxes) on capital and labor applied to productivity growth.
The main way to get the economy to apply more investment (capital) towards productivity improvment is to lower the taxes on the returns you get when you invest for productivity. That means a Capital Gains Tax Cut, and a Corporate Income Tax Cut. Lower Corporate Taxes works for all of Europe (a socialist haven, BTW), it will work here.
The main way to get people to be more productive (i.e. work more) is to decrease their marginal income taxes. That causes actual economic growth because people are penalized less for being productive, so they work more.
The really productive, expanding and hiring business owner needs to see improved incentive (i.e. lower income taxes) before he'll work harder.
Tax cuts that put money in people's pockets to spend gets spent. That doesn't improve productivity. It moves money from the Government's spending account to your spending account, surely a salutory move since the government usually just immolates the money.
Nonetheless, spending doesn't cause growth. Keynsianism is dead.
Investment for productivity improvement causes growth. Supply Side Economics works every time it is tried.
Rather than a political-pander-tax-cut, let's have a tax cut that works:
PERMANENT MARGINAL INCOME AND CAPITAL GAINS TAX RATE CUTS.
That would help, but thanks to a gutless GOP Congress and lack of leadership from Bush, it isn’t likely to happen.
Just locked in this morning, along with our rental properties.
If you really remember 21 percent interest rates and double digit unemployment, then you KNOW what you said about the present economic situation was pure hyperbole...to put it as kindly as possible.
Unless one is paying to be plugged in directly to the market indicies, I would bet $15 to a gallon of gas that most ‘trusted’ news outlets have been instructed to delay numbers 30 minutes or longer today. The big guys are screaming for an edge now. LOL!!
My last Mortage will be paid off in June so no ReFIs for me but I am salavating at my next rental purchase!
Low Interest Rates and depressed R.E. market.
Time to make money!
Well I went short in November and have done very well thank you.
Yes it was a depression. You must have been one of the very few lucky ones unaffected by it.
We should just add a zero to the whole money supply.
Nice.
There must be some "new" definition of the word depression I am not aware of.
That’s what every called it back in the ‘70s.
The late 70's was a depression??? ROTFLMAO
“PERMANENT MARGINAL INCOME AND CAPITAL GAINS TAX RATE CUTS.”
I’ll go along with you on half of that. The capital gains rate is already low comparatively speaking. The marginal tax rate on someone who is upper middle class and who works to earn a dollar is somewhere around 38-45% when you add in social security and state taxes. Said another way, someone who earns a dollar pays 38-45 cents in taxes whereas someone who has a capital gain pays 15-20 cents, tops. That’s a significant disparity that is unjust.
When the effective marginal tax rate on earnings is dropped to somewhere in the region of capital gains, then I’ll be interested in hearing about the need for a further capital gains tax cuts.
These problems could do more harm than the good they think they are trying to do by slowing the data flow.
The market is kinda holding right now and has pulled up from the pent up futures action.
The next move down later today could be a big one....
The inflation numbers were calculated differently during back then. They were reformulated in the early 1990s.
If we use the method from the 1970s, we have about 8% inflation, not 1.5%.
And I am TRYING to explain that things are not as bad as everyone here seems to think they are. I’m TRYING to give a basis of comparison. Compared to the Carter years, this is a hiccup. I’m not saying it’s nothing to worry about, but GEEEZ, some of the reactions are way over the top.
I don't recall anyone calling the late 70's a depression.
No one called the 1970s a depression. I grew up during those times and everyone called it a recession. Maybe you are confused by someone saying, “the 1970s were depressing”.
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