Correct.
A wage or salary comes every month or week its not a gamble.
Investments are gambles and are not guaranteed ...these are not guaranteed incomes.
Thus the gamble.
The economy doesnt hinge on one single factor but the balance of all transactions.
If gains are enough to be a concern of tax loss by lower rates,the transactions themselves have an influence on the economy.
un ruley tax gains is to slow the incentive to invest.
This slows investments in companies,real estate,research and exploration as well as gamble investments on technology.
America has been slowing as the world leader...its not from lack of knowledge ...its the structure itself which hampers proper growth..
A wage or salary comes every month or week its not a gamble.
Investments are gambles and are not guaranteed ...these are not guaranteed incomes.
But that's not relevant to the discussion.
The economy doesnt hinge on one single factor but the balance of all transactions.
The dynamic of all influences would be better said.
If gains are enough to be a concern of tax loss by lower rates,the transactions themselves have an influence on the economy.
Lost me.......the context was "
consumer participation, employment and business profitability ", "
capital gains tax " and the "
balance of all transactions "
Gains of what, tax loss from what?
un ruley tax gains is to slow the incentive to invest.
No....an increase in capital gains tax slows the incentive to buy and sell to capture a capital gain.
Reducing capital gains tax is not done with a focus to initiate investment with freshly earned income, it's mostly done to expand personal financial value by leveraging existing capital investments.
The current market is experiencing volatility from several aspects.
And it's easy to see how anything that influences massive trading to capture low taxed capital gains adds to the volatility.
Going back to previous CG tax rates doesn't have the same negative impact that increasing corporate, dividend/interest and earned income taxes does.
I don't like taxes.....but in funding an infrastructure, tax impact is relative and your argument not as significant as you've projected.
This congressional research is worth reading:
http://www.fas.org/sgp/crs/misc/R40411.pdf
There are many opposing papers out there, but they seem to commonly ignore that volatility aids wealth generation at the expense of the middle class investor.
Why.....because, as a generality, core investors are the participants that control and drive volatility for/to their own advantage. They capture from strength while the small investor is left to guess about the direction of volatility.
The middle class simply hasn't seen the projected benefits as they've been largely captured by the 1% ers. That's a reality, TM....not political rhetoric.
With out the strengthening of the consumer base, investment in new business ventures becomes less relevant.......this is why the wealthy are seen as becoming richer at the expense of the middle class.....the effect is the stockpiling of wealth as venture capital is funneled towards capturing capital gains in existing ventures.
Of course.....this scenario isn't ever lasting....eventually they're called 'bubbles' and as you might remember, from the bio tech bubble in the late 90's to the housing bubble in 2007, the crashes are worse than the risk.
As any tax, capital gains tax can be too high or too low, also.
Going back to previous rates could actually decrease volatility and have a positive influence on long term investing rather than focusing on short term investing.
America has been slowing as the world leader...its not from lack of knowledge ...its the structure itself which hampers proper growth..
It can easily be argued that our entire economic structure is under stress from the ignorance generated by both right and left wing dogma going back over a half century.......it's all about the general population reacting from a lack of knowledge.
These issues aren't black and white....there are shades of gray that are more advantageous....
I'm a long term investor and I see little advantage to volatility.
If I was a short term raider, I would feel differently.
