Capital Gains

[tony]

One of the many problems I have with Obama. Under the Clinton administration capital gains tax was lowered and actually brought in MORE revenue for the government than when it was higher. It promotes investment, so why does he want to raise it? No clue, just my opinion.

[David88vert]

The reason he wants to raise it is simple. It's for income to the government. Whne you have less people making capital gains which are taxable, you have less income for the government; however, their spending has not decreased. Therefore, in order to make up the discrepancy, they raise the rate on the people that are still making capital gains, and decrease the gap. While the proper method would be to decrease spending (or to have saved up some money in reserves), when have we ever known the government to do the right thing?
Once the economy exits this recession, and they are raking in more tax money on capital gains than ever, they will not lower the tax rate. Instead, they will create more government programs "to benefit the people". This cycle will continue until the middle class has been squeezed out. You will either be one of the rich elite, or one of the poor.
Those who do not learn from history are destined to repeat it.

[BanginJimmy]

I agree with David. Obama is not interested in helping the economy. He is interested in expanding the govt. He knows the basic economy in this country is too strong to colapse and that it will eventually rebound on its own. Tax hike he makes now will go reletively unopposed as long as he can push his evil rich campaign.

[tony]

I think both of you missed my point here, its not even beneficial for the government to raise Capital Gains taxes, its income regressive meaning they bring in LESS revenue when it is at the current rate.

[David88vert]

I think you are missing the point. You asked a question - why raise capital gains taxes. I answered that question.
Bottom line - Obama is not responsible for tax legislation. Congress has to pass the budget.

[BanginJimmy]

Tony, any tax hike is regressive. I have stated many times that immediately following tax cuts by Bush Reagan and Kennedy the total tax revenue went up. That would be true of capital gains also. That's why I said that these measures are about control and power, not about revenue and the economy.