Quote:
Originally Posted by waynet
You asked where our wealth went and I told you. I can't help it if you don't like the answer. The wealthy in the USA up until 1984 had a tax rate of 50% and more importantly a capitol gains tax rate of 50%. Those rates are now 16.5% and 15%. That's alot of money the gov't does not have.
The other problem is our defense budget. It is totally out of control but no one seems to have the courage to challenge their budget. We spend more money on defense than the rest of the world combined.
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You are so wrong: The decrease in the tax rate increasd the revenue.
This is from Stephen Moore from the Wall Street Journal:
"The 1997 tax reform, passed under President Clinton, reduced the capital gains tax rate from 28 percent to 20 percent, and taxable capital gains nearly doubled over the next three years. The 2003 reform brought the rate down to 15 percent, and between 2002 and 2005 there was a 154 percent increase in capital gains reported as income."
"This explosion in realized gains cannot be explained only by the rise in the stock market, which averaged just 13 percent annually between 2003 and 2005. Capital gains tax receipts also far outpaced the revenues that the government’s static models predicted. Between 2003 and 2007, actual tax receipts exceeded expectations by $207 billion."
So, when you lower the rates, people invest their money and tax receipts go up, not down. Capital gains is actually voluntary as investors can keep their money tied up in land or whatever.
I say it again, You are wrong!!!