Perhaps the most egregious result from saint Reagan's administration has been the tax break given to speculators by taxing capital gains at a lower rate than earned income.
This was sold largely on the basis that it would encourage savings. Instead it has encouraged the kind of risky business that led to the 2009 crisis.
The worst effects have been the decisions made in board rooms to please the speculating owners. Growth is the only thing that has mattered. Mergers and acquisitions that would otherwise never have happened were justified by the stockholder demand for growth. Sound business decisions have been sacrificed for short term profits. Outsourcing, monopolies, Bain capital, and many other reprehensible practices are the direct result of this tax policy.
And, of course, the rich have gotten richer and the poor have gotten poorer at an accelerated pace. So, what if we reversed the policy and taxed earned income at a lower rate than capital gains? Don't most voters depend on earned income? Hey, Bernie, is there a talking point here?
Tue Sep 01, 2015 at 9:41 AM PT: I apologize for the misattribution of the capital gains tax. I will be more careful in the future. I have done a little research and find that reduced rates for capital gains goes way back before Reagan and also learned that it is a feature of may countries' tax laws. So Sorry. However, I was glad to see so many comments on a subject that does deserve discussion.