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View Diary: Tax Cuts Are Theft (85 comments)

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  •  They DO invest it (0+ / 0-)

    I absolutely hate the generalizations made on this site that wealthy people simply hoard their money. Nothing could be further from the truth. I know a great number of extremely wealthy people, although I am not personally wealthy. I do know that they invest and reinvest when it makes sense to do so. They see no gain to be made by sitting their money in the bank, unless they have circumstances where there are realistic chances that there will be legislation which impacts their businesses and personal lives in a negative manner. What would you do right now if you owned a 100 employee printing company in California? Would you be concerned at all about the new health care law? Would you worry about new environmental regulations that may impact your company? Would you worry about an increase in corporate tax and personal tax rates? Would you start hiring in this environment? I agree that the tax policy that encourages investment is the best policy. That's why you make it easier and less expensive for businesses to compete with each other (it's good for us, the consumers when there's more opportunity for small businesses to compete with the larger ones), you level the playing field in trade policy, you keep their taxes at a reasonable level and don't constantly talk about raising them.

    •  Wait (2+ / 0-)
      Recommended by:
      Paul Rosenberg, mataliandy

      I thought they needed very special very low capital gains tax rates, etc, to "incentivize" investment or else they wouldn't invest.

      --
      Seeing The Forest -- Who is our economy FOR, anyway? Twitter: @dcjohnson

      by davej on Mon Aug 09, 2010 at 12:39:02 PM PDT

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      •  They do (0+ / 0-)

        "when it makes sense to do so".Must I repeat myself.
        C'mon, DaveJ, you're an investor. When do YOU invest? Ok, let's do it slow. If I gave you a choice to invest $1000 that pays 5% interest annually, and you have a choice of paying 15% capital gains tax or 50% capital gains tax, which one would you pick? Easy, right? Now let's ask the same question except you have $1,000 being invested at 5% in the first case and paying 15% tax, or 10% in the second case but you have to pay 50% tax, which one would you choose? Not quite as easy, but in the end you'd pick the second, because the rate of return made up for the tax rate.
        But this is an easy case because you KNOW what your return would be, as if it were a CD or other product. For people to invest with higher tax rates, they have to be sure that the reward outweighs the risk, or that they are surer of the potential return. The surer they are, the less they care about the tax. With all of the potential democratic legislation flying around, how sure do you think they are of their investments?

        •  Dude, dude! (2+ / 0-)
          Recommended by:
          mataliandy, Mas Gaviota
          "when it makes sense to do so".Must I repeat myself.

          There's a space required after a period, no? And a question mark after an interrogatory phrase?

          And "democratic legislation...?" I'm pretty sure you meant "Democratic legislation," amirite?

          in the first case and paying 15% tax, or 10% in the second case but you have to pay 50% tax, which one would you choose?

          Did you leave out the missing comma after "case" on purpose, here?

          Dude - if you're going to berate others for typos, always a sure sign of the small-minded, you gots to proofread your spew offerings.

          Please tell me if most of the regulars here want communism in our country?

          by Skritchard on Mon Aug 09, 2010 at 01:46:22 PM PDT

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    •  How is it that (0+ / 0-)

      all of you wingnut trolls always know lots of "extremely wealthy people"?

      "A lie is not the other side of a story; it's just a lie."

      by happy camper on Mon Aug 09, 2010 at 04:50:46 PM PDT

      [ Parent ]

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