I think Frank agrees with you.
It isn't a matter of putting money in people's pockets. It is a matter that the right tax incentives induce people to engage in more economic behavior than they would otherwise. High cap gains keeps people in old investments where their proceeds could be put in more profitable ventures, but the haircut from the gov't prevents that. Taxes on income over a certain amount guarantee that people will be less willing to work at that rate and wont. I remember my father telling me, at some point you're working for the gov't 90% of the time so why bother?
And the people most likely to say why bother are the ones most capable of generating high incomes, i.e. the most productive.
We need to stop redistributing money from the most productive to the least productive.
It isn't a matter of putting money in people's pockets. It is a matter that the right tax incentives induce people to engage in more economic behavior than they would otherwise. High cap gains keeps people in old investments where their proceeds could be put in more profitable ventures, but the haircut from the gov't prevents that. Taxes on income over a certain amount guarantee that people will be less willing to work at that rate and wont. I remember my father telling me, at some point you're working for the gov't 90% of the time so why bother?
And the people most likely to say why bother are the ones most capable of generating high incomes, i.e. the most productive.
We need to stop redistributing money from the most productive to the least productive.
