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View Diary: FLASH: Mitt knows nothing about business taxation (165 comments)

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  •  Thank YOU! This was the question I had and (6+ / 0-)

    you have explained it very well.

    I knew he was wrong. It didn't make sense even to a non-financial type person like myself. He's comes on so self-assured and convincing but knowing him by now I just knew he had to be lying. It's all he knows how to do.

    .... the venture-capitalist argument for lower capital gain rates is entirely phony.  Most capital gains are not generated by a company's founders or venture capitalists -- rather, they are from sales of stock of long-established companies by investors who bought on the stock exchange from other investors.  That capital is not "put at risk" in the same way a startup company's capital is, and it does not enable the company to hire any additional workers, because it doesn't go into the corporate treasury....   (Caveat:  some corporations buy back their shares, and to that extent a rise in stock prices helps them, but they still do not get the benefit of -- and have never been taxed on -- the capital gain received by a stranger who happened to buy their stock on the NYSE.)
    This is great too:
    And let me get this straight.  If you were a venture capitalist and the capital gains rate were to go up from 15% to 28%, you would stop investing in new companies and ... do what, exactly?  Get a job at the post office because now there's no tax advantage to being an investor?

    "extreme concentration of income is incompatible with real democracy.... the truth is that the whole nature of our society is at stake." Paul Krugman

    by Gorette on Mon Sep 24, 2012 at 11:43:10 AM PDT

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