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View Diary: Rep. Jan Schakowsky releases deficit reduction plan (194 comments)

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  •  Just exactly why (1+ / 0-)
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    Rich in PA

    should investors but not workers receive such elaborate preemptive consideration for the potential effect of inflation on their well-being?  

    When you consider that holding an investment for anything more than a year is considered "long term" and thus eligible for the favorable tax treatment, irrespective of the inflation rate, you would realize that inflation does not have a lot to do with the favored tax status.  

    •  Um (0+ / 0-)

      I thought we were talking about the proposed scenario, where investment income is treated as wages. In that case, the whole "one year" and "long term" thing goes away.

      And there have been plenty of times when inflation as approached 10%, which has a real impact in a year.

      And workers are investors, if they have any kind of retirement plan.

      And the idea isn't to protect investors' well-being, it's to encourage (or at least not discourage) investment. Republicans pro-business nonsense aside, that is still a good idea.

      And I'd be fine protecting workers from the effects of inflation. How about inflation-indexed wages, like many unions have? Or inflation-linked increases in the minimum wage, which are a no brainer.

      Other than that, you've got a pretty good grasp on this.

      •  Not a single real response (0+ / 0-)

        Seriously, the point is, we can promote to a lesser or greater degree investment through tax incentives.  Right now, an investment is heavily favored without regard to whether it is really "long-term" and thus vulnerable to the effects of inflation.  

        I have a better idea: let's work to have a stable financial system that, generally, limits inflation.  This has basically been the sole goal of the Federal Reserve ever since Alan Greenspan became chairman. Look at how hard Bernanke has to justify any move that might even in theory even though it's highly, highly unlikely cause inflation.  

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