Should we abolish the capital gains tax?

[Chris]

Newt Gingrich thinks so.

What do you think?

 

[xsited1]

Perhaps for a short period of time.

The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital . . . the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy.

-- President John F. Kennedy, 1963

Obama also thought this was a good idea when he was campaigning back in October:

Barack Obama believes that we need to encourage investment in small businesses to help create jobs and turn our economy around. That’s why Obama will eliminate all capital gains taxes on investments made in small and start-up businesses. Unlike John McCain, who wants to give $200 billion in new tax cuts to America’s largest and most profitable businesses, Barack Obama wants to cut taxes for the small businesses that create jobs but struggling with restricted access to credit alongside skyrocketing health care and energy costs.

 

[Sinatra]

YES.

At least for a 12-month period, followed by a lesser rate of say, 5% for the following three years after that.

This measure alone would be more stimulative than much of what is contained in the nearly trillion dollar stimulus bill.

 

[Chris]

I think we should eliminate capital gains and create a single payer healthcare system.

Those two things alone would make American business more competitive worldwide.

 

[editec]

I think we should eliminate capital gains and create a single payer healthcare system.

Those two things alone would make American business more competitive worldwide.

I think that we should treat long term capital gains significantly more generously than short term capital gains.

Long term gains should be taxes on a progressive system.

The longer the investment was held the lower the rate it will be taxed.

Why?

Well much of the capital gain in many investments isn't really a capital gain at all.

In fact much of it is nothing more than inflation that drive up the prices.

The cash value of the stock (in terms of purchasing power if you sell it) is the same or even less than the value of the money you invested in the first place.

There is no sane reason to tax people on inflation when in fact they might actually have LOST purchaing power in those investments.

 

[Chris]

Singapore abolished capital gains, and they have had one of the fastest growing economies in the world over the last ten years.

 

[dilloduck]

and at the same time we could impose a weight gain tax and get rich !

 

[Chris]

and at the same time we could impose a weight gain tax and get rich !

If Americans get fat enough it could save Social Security.

They would never live to collect it.

 

[editec]

and at the same time we could impose a weight gain tax and get rich !

If Americans get fat enough it could save Social Security.

They would never live to collect it.

Yes.

Likewise cigarette addiction is also Social security's best friend, too.

Instead of taxing ciggies, we ought to be encouraging people to smoke more just to save us a boatload on money in social security and Medicade.

Cigarette smokers acually cost Medicade and medicare LESS on average than non smokers.

Why?

Because we die 7 years sooner than non smokers.

While the rest of you people are getting your hips replaced and whining about every minor ache and pain of your golden year after golden year, we smokers are considerate enough to die swiftly and in our earlier years die of lung related diseases.

You non-smoking folks ought to THANK us smokers for being so considerate.

 

[Sinatra]

Singapore abolished capital gains, and they have had one of the fastest growing economies in the world over the last ten years.

Lower taxes incentivise investment both by America, and investment dollars outside America.

Similar thing happened to Ireland when it reducted its corporate tax rates - large companies poured billions into the economy, created tens of thousands of new jobs (significant when you consider Ireland's relatively small population) and the Celtic Tiger boom era followed.

Unfortunately Ireland's banking system (like much of Europe) is now in crisis much like our own, so they are dealing with that situation and will have a number of tougher years ahead.

But the basic premise of lower tax rates to create economic growth and prosperity remains sound. Sadly our Democrat leaders appear unwilling to even consider such a possibilty, turning instead to ever larger government...

 

[Chris]

Singapore abolished capital gains, and they have had one of the fastest growing economies in the world over the last ten years.

Lower taxes incentivise investment both by America, and investment dollars outside America.

Similar thing happened to Ireland when it reducted its corporate tax rates - large companies poured billions into the economy, created tens of thousands of new jobs (significant when you consider Ireland's relatively small population) and the Celtic Tiger boom era followed.

Unfortunately Ireland's banking system (like much of Europe) is now in crisis much like our own, so they are dealing with that situation and will have a number of tougher years ahead.

But the basic premise of lower tax rates to create economic growth and prosperity remains sound. Sadly our Democrat leaders appear unwilling to even consider such a possibilty, turning instead to ever larger government...

We could eliminate taxes altogether if we wanted to, but our current problems stem from deregulation of the market, not larger government.

Nice Republican talking point, however.

 

[Charles_Main]

I am all for eliminating the Capitol Gains tax. After all in Effect it is a double tax, as it taxes proceeds from investments which are usually made with Income, that was already taxed once.

Lowering, or eliminating, The Capitol Gains tax is one of the best things that could be done to stimulate investment in the Market.

 

[Chris]

I am all for eliminating the Capitol Gains tax. After all in Effect it is a double tax, as it taxes proceeds from investments which are usually made with Income, that was already taxed once.

Lowering, or eliminating, The Capitol Gains tax is one of the best things that could be done to stimulate investment in the Market.

I agree.

Eliminating the capital gains tax and creating a single payer healthcare system would really help America's businesses.

 

[Sinatra]

Singapore abolished capital gains, and they have had one of the fastest growing economies in the world over the last ten years.

Lower taxes incentivise investment both by America, and investment dollars outside America.

Similar thing happened to Ireland when it reducted its corporate tax rates - large companies poured billions into the economy, created tens of thousands of new jobs (significant when you consider Ireland's relatively small population) and the Celtic Tiger boom era followed.

Unfortunately Ireland's banking system (like much of Europe) is now in crisis much like our own, so they are dealing with that situation and will have a number of tougher years ahead.

But the basic premise of lower tax rates to create economic growth and prosperity remains sound. Sadly our Democrat leaders appear unwilling to even consider such a possibilty, turning instead to ever larger government...

We could eliminate taxes altogether if we wanted to, but our current problems stem from deregulation of the market, not larger government.

Nice Republican talking point, however.

No we could not eliminate taxes altogether - why do you repeatedly make such asinine comments like that?

What we can do is lower many taxes - such as capital gains. That is a great idea. The income tax should also be lowered and simplified - say a 5% bracket, a 10% bracket, and a 15% bracket. That way the income tax is still "progressive" but also far less stifling to economic growth. Eliminate the still-existing loopholes that exist, the bogus tax credits, the equally bogus deductions - make it simple so a person can sit down with one form and fill out their taxes. Then increase the penalties for those who do not pay their taxes.

Drop the corporate tax rate to the same 5-10-15 brackets depending on net profit for that corporation.

In conjunction with these tax cuts, the government MUST curtail spending. Eliminate the Department of Education - take the nearly $70 billion per year we spend on that silly Carter creation, and put it directly toward paying down the national debt. It is far from enough, but would be a great start. Add to that the elimination of the Department of Agriculture as well - a savings of nearly $100 billion per year - now we are talking some real savings.

All other departments except Veteran Affairs should have their budgets cut by 3% per year for the next five years, adjusted for inflation. That would save billions more.

It's not complicated. Lower taxes. Reduce government spending. Watch the economy grow, people prosper, and the future remain bright...

 

[Charles_Main]

Lower taxes incentivise investment both by America, and investment dollars outside America.

Similar thing happened to Ireland when it reducted its corporate tax rates - large companies poured billions into the economy, created tens of thousands of new jobs (significant when you consider Ireland's relatively small population) and the Celtic Tiger boom era followed.

Unfortunately Ireland's banking system (like much of Europe) is now in crisis much like our own, so they are dealing with that situation and will have a number of tougher years ahead.

But the basic premise of lower tax rates to create economic growth and prosperity remains sound. Sadly our Democrat leaders appear unwilling to even consider such a possibilty, turning instead to ever larger government...

We could eliminate taxes altogether if we wanted to, but our current problems stem from deregulation of the market, not larger government.

Nice Republican talking point, however.

No we could not eliminate taxes altogether - why do you repeatedly make such asinine comments like that?

What we can do is lower many taxes - such as capital gains. That is a great idea.

More than just lowering taxes. We need real reform of the tax code. Lets face it. The thing is outrageous. There is a Billion dollar industry around helping people understand the tax code, and ways to avoid it. The Government has a hard time even telling who has paid all their taxes and who has not, and spends Millions enforcing the Code. A code which would break any table you tried to stack it on it is so big.

The Rich and Cooperations are able to use Loops holes in it to avoid Billions in Taxes. We need real reform of the code, not just lowering of Rates. Simplification should be the goal. I am convinced if it was simplified so it was harder to cheat, and easier to comply with. Revenues would increase with out increases in tax rates.

Now as to being able to eliminate all taxes, of course we can not, however we could eliminate Income taxes, and go with all consumption, luxury, and sin type taxes. Sales tax etc. But we will always pay taxes one way or another.

 

[Jon]

You think the market is LESS regulated than it was before, Chris? You're a goddamn fool if you think so. At least now we can hold officers accountable for falsifying financial statements.

As for capital gains, it's a fair tax. It encourages people to invest and save, and guess what happens when people invest? The market benefits. Guess what happen when the market benefits, the people benefit.

 

[auditor0007]

I think we should eliminate capital gains and create a single payer healthcare system.

Those two things alone would make American business more competitive worldwide.

I think that we should treat long term capital gains significantly more generously than short term capital gains.

Long term gains should be taxes on a progressive system.

The longer the investment was held the lower the rate it will be taxed.

Why?

Well much of the capital gain in many investments isn't really a capital gain at all.

In fact much of it is nothing more than inflation that drive up the prices.

The cash value of the stock (in terms of purchasing power if you sell it) is the same or even less than the value of the money you invested in the first place.

There is no sane reason to tax people on inflation when in fact they might actually have LOST purchaing power in those investments.

I think we should have a flat tax, across the board. Get rid of all deductions other than a basic deduction and personal exemptions. All income should be taxed at the same rate including capital gains. One caveat though; capital gains should be adjusted for inflation before being taxed.

 

[garyd]

Given that the money from capital gains has usually (accept in the case of interest earned on savings accounts) has already been taxed at least once. Taxing capital gains is by and large a rather retarded idea that likely costs the government more money than it earns them in higher unemployment rates, higher health care cost for medicaid etc.

 

[manifold]

Yes, we should abolish it in it's current form and tax income from invested capital exactly the same way that income from back breaking labor is taxed. Eliminate the distinction, since it's wholly bogus to begin with.

 

[Toro]

No.

But what we should do is allow those with capital losses greater than $3000 to apply those capital losses to income.