tag:blogger.com,1999:blog-5806884.post6061707429407567668..comments2023-10-31T03:18:26.963-07:00Comments on Great Guys Weblog: Caution is advisedBrethttp://www.blogger.com/profile/15063508651955739056noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5806884.post-50973053009360569262007-06-29T19:38:00.000-07:002007-06-29T19:38:00.000-07:00But income being taxed as it's made, rather than w...But income being taxed as it's made, rather than when it's spent, is also a tax on wealth-creation.<BR/><BR/>I'd be more in favor of abolishing income taxes rather than consumption taxes.Oroboroushttps://www.blogger.com/profile/01710250012500728430noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-66620821615079129062007-06-29T17:39:00.000-07:002007-06-29T17:39:00.000-07:00duck,I think that capital gains taxes are inherent...duck,<BR/><BR/>I think that capital gains taxes are inherently worse for the economy than income taxes. For example, income is taxed when you make it. Capital gains aren't taxed until you sell. That tends to cause investors to hold longer than is optimal which means that less good, older investments get too much money and newer potential ventures end up being starved for investment.<BR/><BR/>However, at least for the moment, there seems to be adequate liquidity for most businesses, so a slight increase in capital gains may not make much difference.Brethttps://www.blogger.com/profile/15063508651955739056noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-87102559383003631242007-06-29T16:01:00.000-07:002007-06-29T16:01:00.000-07:00Great post, Howard. I agree with you. Republicans...Great post, Howard. I agree with you. Republicans bellowed over the disastrous consequences to come when Bill Clinton passed a tax increase early in his term. By the end of his term the economy was booming and we were producing a budget surplus.<BR/><BR/>I've always thought that the tax law should treat capital and labor equally. You neither want to punish the supply side or the demand side of the economy. I would be in favor of a "meeting in the middle" approach, say 20%. If all we do is raise capital gains taxes and leave income taxes as is, I do think that the economy will suffer.Duckhttps://www.blogger.com/profile/08852569465893563139noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-83259419017051551552007-06-28T07:10:00.000-07:002007-06-28T07:10:00.000-07:00positives:low 15% tax rate on capital, generally g...positives:low 15% tax rate on capital, generally good rule of law, accelerating tech. progress, recent setbacks of litigousness in court<BR/><BR/>negatives:uncompetitive corporate tax structure, regulatory burden, threats to free trade and favorable taxation of capital<BR/><BR/>As long as not too many threats are actually realized we'll be fine. This is a great country and we can endure much (including a Hillary presidency) and do well. I'd just rather not conduct that experiment.Howardhttps://www.blogger.com/profile/14980738175201874292noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-90357953797988294802007-06-27T21:50:00.000-07:002007-06-27T21:50:00.000-07:00I was hoping you'd write something like this post,...I was hoping you'd write something like this post, especially the first part. Many of the Dems' proposals (such as letting the tax cuts expire) are probably bad, but even in sum total may not be bad enough to cause a serious and long recession. Kudlow and a number of other commentators have been painting doomsday pictures and I think they are way overly pessimistic. Just another variety of apocaholism.<BR/><BR/>There was good news today - the non-secret ballot for union votes didn't pass. Congress may not ultimately be as anti-growth in practice as some people fear.Brethttps://www.blogger.com/profile/15063508651955739056noreply@blogger.com