Quote:
Originally Posted by
Jayjami
A 39% capital gains rate would discourage new investments in the stock market and more importantly, discourage movement of capital within the marketplace. Let’s say I owned IBM for 30 years, not happy with my returns, wanted to invest in a startup called Apple. If I had to pay 39% taxes, I would be less inclined to sell my IBM stock. Take macro economics 101 and get back to me if you don’t understand what a disaster this would be to the economy.
LOL you telling me to take an intro course to macroeconomics course to learn about that argument...
You numbskull! I took a slew of graduate economics courses on my way to earning two post graduate degrees specializing in finance. And when I repeatedly heard that supply side argument from finance professors that you simplistically parrot here, I, too, accepted it as economic gospel for many years.
Only later when considering the interplay between economics and politics that such an argument ignores, did I realize that when the tax code gives preferential treatment of capital gains versus earned income that over time the wealth and political power it can garner ends up becoming increasingly skewed towards those who don’t have to work for a living. Meaning, it promotes ever-increasing wealth inequality. And that leads to the wealthy garnering an ever increasing proportion of political power to the detriment of most everyone else.
Which is exactly what has happened in the US over the past four decades with the onset of the Reagan Revolution and the Supreme Court’s Citizens United blessing of unlimited campaign spending by superficially “unaffiliated” “legal persons”, and quite anonymously at that. And is a huge reason why a 6-six bankrupt fake billionaire sociopathic narcissistic reality TV star was able to demagogue his way into first capturing the GOP nomination for president AND then defeat the corporately-compromised establishment Democratic Party candidate in the general election.
So, yeah. We’ve tried that tax policy and it has brought us Trump and the utter debasing of the GOP as it keeps itself tied to Trump and his trampling of the Constitution in order to keep from losing relevance with the voters.