Right wingers don’t appreciate competitive open markets

Discussion in 'Economy' started by Supposn, Apr 15, 2011.

  1. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    869
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    Right wingers don’t appreciate competitive open markets; that’s why they’re proponents of the capital gains tax discount.

    This is a transcript of a letter I addressed to a U.S. Congresswomen prior to the 2010 elections.

    Respectfully, Supposn
    ///////////////////////////////

    I’m pleased that you advocate (to whatever extent possible) we receive the maximum economic stimulus from every portion of Bush’s tax cuts that the U. S. Congress chooses to retain. I agree that if we’re reducing our revenue and increasing our debt, we want maximum value for our financial risk.

    I heard you speak in favor of a 15% tax rate for long term capital gains. I’m opposed to special strokes for special folks or the government determining which classification of income should be favored over other incomes.

    USA’s tax discount for long term capital gains reduces government’s revenues but it does not increase the net amounts invested within the USA. It induces aggregate shifting of investments to favor one category of investment over another. The incomes of those who nurture and reinvest their efforts and wealth into their enterprises are certainly economically no less worthy than that of investors who take the money and run after some time in excess of 365 days.

    I'm not opposed to speculation. I'm opposed to government favoring speculators which is not optimum economic policy (if we really trust neutral public markets and free enterprise).

    Investors are pragmatists. They don’t generally spend time discussing or arguing with the financial environments governments’ create; they simply function within those environments.
     
  2. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    This makes no sense at all.
     
  3. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,164
    Thanks Received:
    6,900
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +15,009
    Right wingers don’t appreciate competitive open markets

    The truth is, they don't understand markets or capitalism.

    They go on endlessly about "rich people make jobs", when we all know "supply and demand" make jobs. And many of those jobs are created through, get this, "Bank Loans". Start with Ford and go through Gates. Or did they borrow to create a company that fed a "demand"?

    Simple common sense tells you, when people have no money, there is NO demand, hence - no jobs. It's just that simple, simple enough for "simpletons". Oops, sorry. Republicans are so easily insulted.
     
  4. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194

    Being an asshole does not improve your position. So tell me, how many jobs does a guy making 20k/yr create? Answer: none, unless he can get the backing of some rich guys who can get a good return on their investment if the capital gains tax is not too high. Seems simple enough, the lower the capital gains tax the more investment gets made.

    There has never been a situation where a country raised taxes and spent more money and got themselves out of financial purgatory. NEVER. It doesn't work, never has, never will. How's that for understanding markets or capitalism.
     
  5. rdean
    Online

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,164
    Thanks Received:
    6,900
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +15,009
    There is a show I like to watch starring Joan Rivers. She goes around and asks rich people where their money came from. More often than not, the person interviewed figured out something to sell. One invented a new grill. One guy made "joke teeth". They started with "bank loans", ideas and sometimes family members pitching in. This Republican idea that everything comes from "rich" people is delusional. You have to "sell something". No one "makes jobs". It's not a charity. There has to be a "demand".

    You see, Republicans "skip over" the part about "making something to sell". Listen to them, they don't understand "supply and demand". They hear "tax" and "investment", but do they know what "investment" means? If they did, they would want to "invest" in America's infrastructure.

    Many times, lack of imagination reflects a "lack of education" and vice versa.
     
  6. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,127
    Thanks Received:
    9,267
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,413
    Sure it does. He wants your pot to piss in, because he doesn't have one.
     
  7. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    869
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    Wiseacre, right wingers often chant “Customers, not businesses pay taxes”.

    This is true for all business expenditures but it is not true of income taxes. Due to its nature a tax upon net income’s not passed onto the customers but it is directly or indirectly paid by the owners of the enterprises.

    FICA, unemployment, disability, casualty insurance expenditures are passed onto customers. Corporate and other income taxes are not (passed onto customers).

    If the nature of competitive markets tolerated such additional charges to be passed on, business enterprises and their owners would have no reason to complain about taxes affects upon themselves.

    Respectfully, Supposn
     
  8. Mad Scientist
    Offline

    Mad Scientist Deplorable Gold Supporting Member Supporting Member

    Joined:
    Sep 15, 2008
    Messages:
    23,940
    Thanks Received:
    5,212
    Trophy Points:
    270
    Ratings:
    +7,684
    rdean gets his economic education from Joan Rivers "Man on the Street" interviews. This explains why he doesn't ever know what he's talking about.

    Do you get yer' education about the Constitution from Jay Lenos "Man on the Street" interviews deenie? :lol:
     
  9. Dont Taz Me Bro
    Offline

    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

    Joined:
    Nov 17, 2009
    Messages:
    31,649
    Thanks Received:
    6,686
    Trophy Points:
    1,170
    Location:
    Las Vegas, Nevada
    Ratings:
    +17,543
    We don't have competitive markets in this country and the capital gains tax has dick to do with it. You don't know what the hell you're talking about so shut up.
     
    • Thank You! Thank You! x 1
  10. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,618
    I think there is a good social benefit to taxing short term investments marginally different than long term investments.

    But if I had my druthers our tax code would treat ALL INCOME the same.

    I might even be interested in some of the various flat tax proposals if we did that.

    But since MOST of the dollars earned in this nation are taxed at rates lower than the rates imposed on incomes from labor?

    Then a progressive system of taxation is about the best we can come up with.
     

Share This Page