And this is supposed to be bad? The fact that the Democrats can run this shows that they don't understand economics. Capital gains taxes, especially large ones, are a very big disincentive to economic activity. One problem is that they are often just a tax on inflation. I know that was the fact when I bought my last house. I sold a house in Herndon, VA and moved to Harrisonburg, VA where houses cost less. I sold my house in Herndon and invested all the proceeds in the house in Harrisonburg, but because Harrisonburg houses were cheaper I sold a more expensive house and bought a cheaper house which got me hit with a capital gains tax for the house in Herndon and cost me something like $10,000 which I had to pay out of pocket to live in a less expensive house, which was almost the carbon copy of the house I had in Herndon. Where was the rationale there? I felt raped. Most of the time capital gains taxes are taxes on inflation that the government caused in the first place. The value of the thing didn't go up, the value of the dollar went down so you have to pay more taxes.
In fact that also applies to bracket creep. You get paid more dollars that are worth less and you end up in a higher tax bracket so you pay more taxes but you really don't have more buying power, you have less. Your standard of living declines buy you're paying more taxes.
For the very rich the same applies. They have their capital locked up in some investment and if they sell it they have to pay a horrendous tax, so they leave it there rather than pay the tax. This means that smart economic moves that could have been made, moves that would create jobs and power the economy simply don't happen. It also means money flees the country to places where it is taxed less.
Newt Gingrich is telling it like it is. The dumb Democrats and other economic illiterates just don't get it. It's a shame they're so ill educated. It leads to putting people like Obama into power which fuels the freight train that is hurtling towards the destruction of the economy. Thanks you idiots!
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Now, get me wrong - I'm down with Newt as Not-Obama. But somebody should ask Doug Hoffman about original TEA Party credentials.
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http://libertyatstake.blogspot.com/
"Because the Only Good Progressive is a Failed Progressive"
I have a couple of problems with Newt, but I have a couple of problems with every candidate. I think Romney would be a disaster and while I rather like Rick Perry our visual media dominated culture won't let someone who's not fast on the uptake win. I like a lot of Ron Paul's positions but he's too old and I think he's seen as too marginal a candidate. I like a Michele Bachmann and I really liked Herman Cain. So I'm just not all that happy about any of them. Of the current pack I like Newt well enough. I used to like him more, but he's flip flopped around over the last twenty years to make me uncomfortable and his personal life has been a mess.
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