Re: That's it! I'm voting for McCain

This is Hugh Gibbons's brain on drugs:
> John Galt wrote:
>> That's correct, but there's a big "BUT" associated with that fact. In
fact, 
>> more than one:
>> 1) The capital gains tax also smacks people who aren't rich, but are
doing 
>> their best to invest wisely for their retirement. High capital gains 
>> taxation virtually insures that middle america will rely more heavily
on 
>> their Social Security than they otherwise would.

Or on things like their primary home.

>The obvious way to fix that is progressive taxation of capital gains. 
>
>> 2) The tax distorts the markets negatively. When stocks and funds are
going 
>> up, all is good. When stocks and funds are going down, after an
increase, 
>> tax consideration lead people to hold onto their equities longer than
they 
>> should, incurring greater losses.
>
>If I lost money on an investment, what good does a lower capital gains 
>tax rate do me?  There's no profit to tax!

I've never understood the claim that investors would stop investing if
they had to pay the same tax rates everybody else does.  I think
that's baloney.  Investors aren't going to sink their into 3% savings
accounts to avoid taxation since they have to pay it on the savings
interest as well.  They'll invest alright, they'll just do so more
carefully and patiently.  They'll also realize that wealth creation is
going to continue to require the production of valuable product.

Swill
-- 
Gobama!  Gobama!  Gobama!  Gobama!