Then all the investors would pull their money out of the market and ship it overseas or to some other tax reduced investment. The capital gains tax is designed to bring in revenue to the government while at the same time, encourage investment. Increase those taxes to 33% and watch the market crash and burn.
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Ronald Reagan thought this was a good idea. When he pushed to have rates reduced to 28%, the capital gains rate was 28% also. It wasn't until later that everyone thought it to be such a great idea to reduce those rates.
It wasn't until later that everyone thought it to be such a great idea to reduce those rates.
Reducing those rates was a great idea.
AFTER Ronnie increased them and "simplified" the tax code according to you? lol
Capital Gains Tax Cuts ‘By Far’ The Biggest Contributor To Growth In Income Inequality, Study Finds
By far, the largest contributor to this increase was changes in income from capital gains and dividends. Changes in wages had an equalizing effect over this period as did changes in taxes. Most of the equalizing effect of taxes took place after the 1993 tax hike; most of the equalizing effect, however, was reversed after the 2001 and 2003 Bush-era tax cuts. […]
The large increase in the contribution of capital gains and dividends to the Gini coefficient, however, is due to the large increase in the share of after-tax income from capital gains and dividends, and to the increase in the correlation of this income source with after-tax income.
Hungerford’s findings are
similar to a study he produced for the Congressional Research Service in 2011, which found that while income grew 25 percent from 1996 to 2006 for all Americans, it grew 74 percent for the top 1 percent and 96 percent for the top 0.1 percent.
That study also found that tax cuts on capital gains were the biggest driver of the disparity.