Capital gains taxes are those taxes that are levied upon shareholders gains from investments held for duration longer than one year. With the present lower capital gains tax of fifteen percent; shareholders can realize more of the revenue of their investments, thus lower capital gains taxes promotes stockholders votes for dividends/profit taking. With higher capital gains taxes; shareholders generally vote for more capital improvements or investments by their companies. This promotes a stronger business format for growth, thus improving the assessed value or worth of a stock in the long run. Capital improvements also mean job creation, wage growth, and increasing stock value via consumer confidence and industry consolidations or expansions. Simply put, higher capital gains taxes force business and corporations to expend money on growth, while lower capital gains forces business to look for the quick buck to give to shareholders. Capital gains must be raised back to pre 1996 levels of 28% on long term capital gains, but the current low capital gain rates should remain for those who are in the 10% and 15% income tax brackets
Raise Capital Gains Taxes
Tags: raise cap. gain taxes
Comments (11)
“If taxes are laid upon us without our having a legal representation where they are laid, we are reduced from the character of free subjects to the state of tributary slaves.” – Samuel Adams
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” - Thomas Jefferson, Letter to the Secretary of the Treasury, Albert Gallatin (1802), 3rd president of United States (1743 – 1826);
“The refusal of King George 3rd to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution.” – Benjamin Franklin, Founding Father
You're missing the point - Corporations DO NOT PAY CAPITAL GAINS TAXES - SHAREHOLDERS DO - it is punitive... want to see our economy take off?
remove capital gains taxes - money will explode into companies for investment & Capital improvements leading to more employment...
want to see our economy take off? - eliminate DIVIDEND TAXES and the real rate of return will skyrocket giving companies in the US a level playing field compared to foreign held companies... people will be able to get a decent return on US companies and will therefore invest in domestic companies instead of overseas
Foreign companies will want to locate back in the US, US companies with locations in other countries (China/Mexico) will want to move back home... very simple...
Mr/Ms. Troxel, you obviously missed economics when you were being educated.
Lower the Capital Gains Tax, and those with Capital will begin to reinvest. Raise it above what their return on their investment actually earns....and watch them bury that money in the floorboards to earn the modest interest for the next ten years. They still make money, but the jobs that depend on that investment are hosed.
If you'd stop knee-jerking and crying about some percieved class-division, and investigate in earnest, you'd have figured out that the Great Depression, among ...and in collusion with other market forces, was caused when investors took a ten year holiday and did exactly what I mentioned above.
Over taxation is just the Government's way of raising our taxes the invisible way. They hit big business, which passes those increases on to you and I as cost hikes for goods and services. The Governmemnt gets their cut, and you and I get to pay more for our goods and services. It's just like being taxed more up front...but it's a backdoor method, and doesn't get to the front burner when we're talking about what ACTUALLY comes out of our wallets due to the Government's actions.
I am against dividend payments for they take away from a businesses growth patterns by moving money to those who did nothing but invest to earn it. Business growth is stimulated with higher capital gains taxes by keeping the money in the business and growing it in the long term. Dividends suck the health out of any business that pays them. I firmly believe that the decline in the American economy wouldn’t have been so steep had they left capital gains taxes at the Clinton level.
“Predatory capitalism is characterized as the following: Profit-seeking corporations can be a great force for good in the world, creating and providing wonderful goods and services that would be unavailable by any other means. But we also recognize that if they are unregulated, they harm the public these five ways.”
1) NOT PAY TAXES -In order to maximize profits, they always seek to avoid or minimize their taxes.
2) ELIMINATE COMPETION -In order to maximize profits, they always seek to eliminate or control their competition.
3) CUT WAGES AND SALARIES - In order to maximize profits, they always seek to reduce their labor costs.
4) DISREGARD THE ENVIRONMENT - In order to maximize profits, they always seek to avoid all environmental restraints.
5) SELL DANGEROUS, HARMFUL PRODUCTS - In order to maximize profits, they may tempt to sell dangerous or harmful products.
you five ways don't hold water...
1) why would a business 'want' to pay taxes? they went into business in order to make a profit... not to give you a job, not to be 'patriotic' and support the gov't... Let's say our government could run without one penny of taxes from business - would you then advocate they pay taxes? if so, you don't understand the benefit companies offer...
2) Sure i want to eliminate my competition... they want to eliminate me.. are you insinuating they may become a monopoly? Usually this only happens with the aid of Gov't... Poor Ford, now they not only have to compete on their own - they now have to compete with the unfair aid of Big Gov't..
If you truly fill a need with a product or service, give good service and a great experience you will never have to worry about being eliminated by your competition...
3) you have never run a business before have you?
they didn't start the business with the thought that they were doing it specifically because they want to pay you a salary and take care of your family... they started it for their own success and profit... if they need more work done than they can do it themselves they will offer a position for a person to accept the job and terms... they can also eliminate the job if they determine the person holding it no longer contributes a profit to the bottom line... if i can replace that person with a computer program, automated equipement that saves me money by all means i will do it and so would you if you owned the business - this then gives the person being 'laid off' an opportunity to self improve and find a better situation... or maybe they should consider becoming a business owener...
keep in mind, you don't have to hire anyone if you become self employed.. i am and have never hired anyone... should gov't come in and force me to hire an employee? if not, why should you be concerned if i want to cut my costs and overhead (employees)
4) Our environment has never been better... but one reason many companies have gone offshore is precisley because it takes an Act of Congress to open some companies now - the corollary to your premise - Gov't want to minimize profits and seek to punish companies as much as possible as it relates to the environment
5) this is STUPID. How many people will keep buying lead laced toys from china, or any other 'dangerous' product... with the internet and ability to get the word out - just try to sell dangerous or harmful products... you will go out of business in a flash...
Sir, you would make a great Bureaucrat.... please don't run for office...
FINAllY - where did you get your financial education? News Flash: Companies don't 'keep capital in the business and keep it growing long term" - they don't grow money.. they take the money you invest and buy stuff - machinery, advertise, build branch offices, hire more salesmen, make new products... the capital is what they run their business with... YOU invest your capital in a company and YOU PAY capital gains tax if you sell your shares and experience a profit...
lower capital gains taxes frees up capital to be reinvested and creating a higher velocity of money creating more opportunities and growth of business...
by the way, Dividends is what a company pays out as income to reward their investors once the company has matured and is no longer in a growth mode... once you have a 'coke machine' on every corner, coke doesn't need as much capital to build new factories - they just need to maintain them... so what to do with all that profit? gonna put it in an account and let it grow cobwebs? NO - they pay it out to their investors and divey it up - share in the profits as they make it...
Please try again...
Please listen to Jake. He and I obviously own businesses.
We understand that if the average return on a business investment for an investor is 25% (highly volatile investments, at that. They may make that much, or they might lose it all) and you put Capital Gains at 28%...they'll stuff their money in a bank and still make money on simple interest....while you end up in an unemployment line because your company couldn't attract any investors.
Let's remove the politics from the issue and use intellectual honesty.
The capital gains tax prevents the movement of capital to best serve society's needs. Many of the most progressive economies do not subscribe to a capital gains tax. The tax tends to lock investors into "old" thinking and shy away from "new" ideas and ventures. Having a capital gains tax is preventing economic growth and economic renovation. Not the best idea.
But make them more PROGRESSIVE!!
Tax ONLY welfare and food stamps so these leeches FINALLY do something for the country.
I'm for something to be done, but can't buy off on taxing.