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View Diary: Conservative Exceptionalism (184 comments)

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  •  Well, they will always try to avoid taxes. (1+ / 0-)
    Recommended by:
    dkosdan

    The incentive to invest or start  new businesses rises, however, when the difference between income tax rates and capital gains tax rates is greater.

    •  Ish. (4+ / 0-)
      Recommended by:
      dougymi, Forest Deva, offgrid, marleycat

      Actually, investment decisions often have absolutely nothing, and I mean nothing, to do with marginal tax rates on personal income, capital returns tax rates, or the size of the difference between the two. Investment decisions have to do with market conditions being favorable or unfavorable to a profitable idea. Period. Business tax rates, licensing fees, etc. might factor into the decision at the margins, but really, the decision to invest in something or start a new business depends more on sustainable demand for the good or service you plan to provide. The rest is something you bitch about after your investment or business has succeeded for awhile...

      Blogs: http://mediadeconstruction.com/ Twitter: realsteveholt

      by steveholt on Sun Nov 11, 2012 at 07:38:54 AM PST

      [ Parent ]

    •  Giving tax advantage to unearned income... (4+ / 0-)
      Recommended by:
      offgrid, Laconic Lib, CodeTalker, Ahianne

      ...incentivizes KEEPING assets and capital in unearned income streams.

      There is no point at which a holder of capital says "Okay, I've accumulated enough wealth through financial manipulation" if financial manipulation yields higher ROI than other options.

      See Capital, Bain.

      When you are right you cannot be too radical; when you are wrong, you cannot be too conservative. --Martin Luther King Jr.

      by Egalitare on Sun Nov 11, 2012 at 07:44:21 AM PST

      [ Parent ]

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