Investment and growth go hand in hand. If a well to do investor is taxed 75% many will not invest or take the risk on a higher risk investment. This kills jobs and growth but likely makes some people happy. That is why Capital Gains should encourage such risk. It encourages activity and jobs. Good for all. Even when marginal rates were 9…
Investment and growth go hand in hand. If a well to do investor is taxed 75% many will not invest or take the risk on a higher risk investment. This kills jobs and growth but likely makes some people happy. That is why Capital Gains should encourage such risk. It encourages activity and jobs. Good for all. Even when marginal rates were 90% the effective tax rate was only a few percent higher on high earners. JFK lowered taxes declaring that high rates encouraged a misallocation in investment. So the real question is what is the real revenue the government needs to do what is best for all constituents? It’s been about 20% for decades. I think it has shifted to 25%. That means we need a rational way to get there that still grows the economy. It’s not the Biden plan that is entitlement central nor the previous administrations. A big key is the more growth we have, longer term the more we can spend and invest as a government.
Growth is NOT the answer. America has had cycles of growth and bust since 1776. If growth were the answer, we would all have opportunities for a great education, health care and feel safe and secure.
The fact is that far too many Americans do not have the health care one needs - I pay $984/month for a horrid health care plan! Far too many Americans are within two paychecks of having nothing in their account, including a child of mine.
I agree with you about the question facing our public policy makers - how does this society address this vast inequality of opportunities, where EVERYTHING is monetized in a for-profit model.
Now, the uber wealthy pay nothing in taxes, and my children pay somewhere in the 20% range, on working class incomes. Totally dysfunctional - and not beyond a rational discussion to solve.
Investment and growth go hand in hand. If a well to do investor is taxed 75% many will not invest or take the risk on a higher risk investment. This kills jobs and growth but likely makes some people happy. That is why Capital Gains should encourage such risk. It encourages activity and jobs. Good for all. Even when marginal rates were 90% the effective tax rate was only a few percent higher on high earners. JFK lowered taxes declaring that high rates encouraged a misallocation in investment. So the real question is what is the real revenue the government needs to do what is best for all constituents? It’s been about 20% for decades. I think it has shifted to 25%. That means we need a rational way to get there that still grows the economy. It’s not the Biden plan that is entitlement central nor the previous administrations. A big key is the more growth we have, longer term the more we can spend and invest as a government.
Growth is NOT the answer. America has had cycles of growth and bust since 1776. If growth were the answer, we would all have opportunities for a great education, health care and feel safe and secure.
The fact is that far too many Americans do not have the health care one needs - I pay $984/month for a horrid health care plan! Far too many Americans are within two paychecks of having nothing in their account, including a child of mine.
I agree with you about the question facing our public policy makers - how does this society address this vast inequality of opportunities, where EVERYTHING is monetized in a for-profit model.
Now, the uber wealthy pay nothing in taxes, and my children pay somewhere in the 20% range, on working class incomes. Totally dysfunctional - and not beyond a rational discussion to solve.
We have a great but imperfect model. It needs balancing. Growth and prosperity matter. Command economies have all failed.
NO ONE is speaking about a 'command economiy' - except conservatives.