Republican's and Capital Gains tax

Discussion in 'Politics' started by Sactowndog, Dec 18, 2011.

  1. Sactowndog

    Sactowndog Active Member

    Jul 4, 2011
    Thanks Received:
    Trophy Points:
    What is the infatuation with Republican's and the captial gains tax?

    Imagine you are a billionaire and you want to maximize your return....

    You have two countries where you can chose to live and where you can choose to invest (your billion)

    Country 1:
    0% Corporate Income Tax
    30% Capital Gains Tax

    Country 2:
    30% Corporate Income Tax
    0% Capital Gains Tax

    To maxmimize your revenue, it seems to me you would live in country 2 and invest in Country 1. This model allows your investment to grow in the companies in which you invest tax free. When you go to sell the fund you pay no capital gains tax.

    In other words country 1 is a better place to live as a billionaire because you don't pay any tax. Country 2 is a better place to live as the middle class because invest is flowing into your country (meaning more jobs, lower interest rates)

    So if you are on the other side (the country) and you want to attract global investment the approach should be to eliminate corporate income tax instead of capital gains tax. It seems the Republican's are pandering to the wealthy more than looking to increase jobs.

Share This Page