Increase the Captial Gain Tax Rate -- that's a battle cry that can send the Right Wing World View go spinning off its axis ...
ABC Pushes for Tax Hike on Capital Gains, Ignores Likelihood of Tax Revenue Loss
by Brad Wilmouth, newsbusters.org -- January 29, 2011
On Friday’s World News, anchor Diane Sawyer set up that show’s piece:
And, moving on to this question of Wall Street versus outrage on main street in the United States, there was a jaw-dropping payday that caught our eye today: $5 billion made by one hedge fund manager last year. The Wall Street Journal first reported the phenomenal amount netted by John Paulson, which works out at $159 every second - every second of every day. And, as ABC's David Muir reports, this is just one of the many Wall Street paydays benefitting from a giant tax loophole.
After informing viewers of Paulson’s hefty income, correspondent David Muir injected class envy, noting that "some lawmakers" are "angry" about hedge fund managers getting "tax breaks."
Well actually David Muir was expressing more journalistic shock, than anger and envy, I thought if you actually listen to the ABC Clip ...
And Yes Brad, our historically low Capital Gain rates of 15%, amount to a Tax Loophole when you dig into the details.
Hedge Fund Manager John Paulson Takes Home Record $5 Billion in Profits in 2010
By DAVID MUIR, ABCNews -- Jan. 28, 2010
[Mobile Phone Transcript: the Diane Sawyer and David Muir report]
Capital Gains Taxed at Lower Rate
On top of that, a good portion of Paulson's profits are considered long-term capital gains, income that is taxed by the federal government at a rate of 15 percent. Meanwhile, most Americans pay an income tax rate up to 35 percent.
The seeming disparity has some lawmakers angrily asking the question, Why are hedge fund managers benefitting from tax breaks that the average American family does not receive?
"I think it's outrageous," said Rep. Sander Levin, D-Mich. "He should pay like everybody else does, ordinary income taxes. He's simply managing other peoples' money, not his own."
Yes it is "Outrageous" -- $5 Billion dollars a year ... to one CEO ... for simply "changing-money."
I think they call that "Churn" in the industry. Where is the "Economic Productivity" in that?
Hedge Fund Manager John Paulson Takes Home Record $5 Billion in Profits in 2010
Jaw-Dropping Paydays Have Some Asking if Capital Gains Tax Rate Is Fair
By DAVID MUIR, ABCNews, Jan. 28, 2010
[Link has the actual Clip on the Diane Sawyer and David Muir report on John Paulson's $5 billion dollar payday.]
Hedge fund manager John Paulson made more than $5 billion in personal profits last year, the Wall Street Journal reported today. The jaw-dropping figure works out to roughly $159 rolling in every single second.
[...]
Closing Loophole Could Generate $25 Billion, Lawmaker Says
Levin argued that closing the loophole could bring in $25 billion in taxes over the next decade alone, but the lawmakers will have a tough time changing regulations with a White House focused on strengthening ties to the business community.
[...]
There are signs that the Obama administration is at least aware of the outrage. Just today, Commerce Secretary Gary Locke acknowledged to ABC News that Paulson's hedge fund payday is enormous.
"It's really part of the bizarre tax code that we have," Locke said.
"Bizarre" is one word for it. And perhaps it's "fitting" too that,
John Paulson is making "$159 every second - every second of every day."
Especially when you consider that he is no doubt profiting from "Flash Trading" occurring on that same second Time Scale -- in the world Micro-second computer trading.
Those Computer programs are super-smart, Right?
Macro Profits from Harvesting the Micro Economy -- What could go Wrong Here?
Gumball Automatic Trading Program
http://www.youtube.com/...
Now speed up that automated, computerized Trading Action by about a MILLION Times, across the entire universe of Tradeable Markets -- SIMULATANEOUSLY and in Real Time -- and you may get an inkling of what our "traditional" 401k's, our Mutual Funds, our Pension Funds, are up against.
They don't stand a (competitive) chance.
I hate to say it but --
The Machines (from the future) may have already won.
Don't Blink, Flash Trades may be Hiding, But They'll be BACK
Dec 26, 2010 -- by jamess
There is a solution to our Casino Capitalism economy -- It's called enacting a higher Capital Gains Tax Rate as Sander Levin is proposing.
And it's called levying a Financial Transactions Tax (FTT), as Peter DeFazio is proposing:
[...] a 0.25% tax on buying or selling a stock would be $25 on a $10,000 stock purchase, which would make little difference to someone intending to hold the stock for any period of time.
[...]
Yet a modest tax, too small for most investors to even notice, could add $100 billion per year -- $1 Trillion over 10 years -- to Federal revenues.
All told it was a very GREEN Christmas for Wall Street, this Year
Dec 25, 2010 -- by jamess
It's called Tax Fairness. It's called Economic Leadership.
Yet ...
In this Brave, New, Brainless Era of "Shared Sacrifice" that we are mindless falling into
-- an Era where EVERYTHING is supposed to be on the Table ...
Our Social Security, Our Pensions, Our COLAs, Our hard-won Labor Rights --
IF all that is supposed to be on the Table -- then WHY aren't these BILLION DOLLAR, MICRO-SECOND Tax Loopholes -- NOT also On the Table?
Fair is fair.
-------------
I'll close with a rant, from one of my favorite writers ...
(someone has to frame some counter-arguments, lol.)
If EVERYTHING should be on the Table --
What about putting those Bush Tax Cuts, on the Table?
What about putting Capital Gains, on the Table?
What about putting the Estate Tax, on the Table?
What about putting the FICA Tax Ceiling, on the Table?
WHY is it a given, that the Income side of the National Ledger, is OFF the Table?
Why is Raising Taxes so Untouchable --
While our current and future security, of ordinary Americans, are not?
If Everything should be on the Table -- what about Taxes?
Jan 24, 2011 -- by jamess
Perhaps they should start looking at what's on OUR Kitchen Tables, eh?
In some parts of the Economy, the cupboards are getting kind of bare ...
Of course what kind of additional "Shared Sacrifice" would Austerity Hawks find there?
Those folks (the 99ers) already "gave at the office" -- Thank you very much!