zonly1
Probie still throwin'em
Clinton raised the long term cap gains tax rate to 28%, and nobody really cared. The economy took off anyway, and we had high GDP growth and good job creation. The Gingrich lead repub Congress lowered it down to 20% in 1997 and the economy continued to boom. And of course Bush lowered it to 15% in 2003 after a recession and the 9/11 attack and the economy picked up significantly. Many economists would credit the CG rate cut as at least a factor. Point is, sometimes it matters more than at other times.
That rate is going up to 20% in 2013 anyway, under current law. But the real question is whether or not raising that rate to match the ordinary marginal tax rate would have a deletorious effect at a time like this. I look at the expected increase in revenue relative to the possible hit to the economy and have to believe it's just not worth it for now. Banks require collateral before they make business loans for startups, which is where most new jobs come from. Angel investors are needed, you don't want to disincentivize them at a time when the economy is struggling.
please define purchasing power