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View Diary: Conservative Exceptionalism (184 comments)

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  •  High marginal income tax rates create more jobs. (12+ / 0-)
    Even if you limit the scope of the argument to activity within a single company, the "taxes leads to less jobs" equation doesn't hold true. In fact, there's a counter narrative that has turned out to be a better fit with the data. When taxes are low on the wealthy, then they can directly pocket much more of the money coming in. That means there's less incentive to invest more in their company because they are able to meet their own desires by grabbing a higher portion of a smaller pie. When taxes go up, a wealthy business owner wanting to keep the same level of income has only one choice–grow the pie.

    Instead of reducing jobs, higher taxes can actually stimulate the creation of jobs. They don't prevent the accumulation of great wealth, they just expand the base that's needed to support the narrow top of the pyramid. Without any direct "redistribution" in the form of the government taking dollars from one person and giving them to another, higher taxes still act to reduce the gap between rich and poor by providing incentive for real growth rather than simple concentration of wealth.

    I think that's true. But also, when marginal income tax rates are high, it encourages people to try to take more income as from sources that are taxed at a lower rate, such as dividends and capital gains from investment.
    •  They seem to try to take more income from sources (14+ / 0-)

      that are taxed lower or not at all even when marginal tax rates are low, like Mitt Romney. And to you Bill O., since when does a top marginal tax rate of 50% translate into the government taking 50% of your entire income? For a guy who boasts about being so smart and well-educated, why do you not understand how progressive tax systems work?

      A society grows great when old men plant trees in whose shade they know they shall never sit. - Greek proverb

      by marleycat on Sun Nov 11, 2012 at 06:26:26 AM PST

      [ Parent ]

    •  Which is why cap. gains need to be taxed more (14+ / 0-)

      I would suggest a sliding scale, from 50% when held 1 month or less (equivalent to a gambling win) to 5% if held more than five years.  We need to reward investors for holding their money in a company and punish those who use the stock market like a casino.

      •  Love it! (1+ / 0-)
        Recommended by:
        expatjourno

        Once upon a time I was fortunate enough to be able to hold on to some stock I'd received from my employer.  I only did that because I knew I'd pay lower taxes that way.

        The problem is we're arguing about the wallpaper and we haven't even got a foundation yet.

        by 84thProblem on Sun Nov 11, 2012 at 07:46:27 AM PST

        [ Parent ]

      •  Beyond the IPO (4+ / 0-)

        "Investors" aren't really "investing" in anything. The sale and resale of a stock after the IPO doesn't really help a company at all, beyond imparting "buzz." None of the money from the sales ever finds its way back to the originating company and can't be used for expansion or R&D. It becomes a game people play with the exclusive objective of turning a quantity of cash into a bigger quantity of cash without expending any effort.

        America's reverence for "investors" is really bizarre. With the exception of those involved in IPOs, most investors are the definition of parasites. Hoping to get something for nothing. The fact that we buy into this Wall Street crap is mind boggling.

        Capital gains should be taxed on a sliding scale based on total wealth. Low income people get to keep 100% of their capital gains. Obscenely rich, like the Kochs, Gates and Buffets of the world should get taxed at 100%.

        No matter how smart Mitt Romney may think he is, there is nothing he has done in his life that warrants giving him $50,000 per day. Tax people at his level at 95 percent. He'll still end up with $1 million per year for doing absolutely squat and if that isn't enough for him, tough shit. A huge chunk of the American workforce has to work 20 to 30 to make $1 million and there is absolutely no doubt that they are contributing more to the health of the economy than people like Mitt who do nothing but skim.

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