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Canuck57[_9_]

On 13/06/2011 10:59 PM, wrote:
On Mon, 13 Jun 2011 19:57:36 -0400, wrote:

I did hear one idea on capital gains that sounded interesting. Tie the
tax discount more closely to how long the investment was held.
You wouldn't get the full tax break until it was held 5 years and make
it a higher percentage ending at the regular income rate at 1 or 2
years.
That would encourage more long term investment.
I think I would but an extra tax on any financial instrument that was
kept less than a month to make flash trading less attractive.

The more the money moves through the economy the better off the economy
is. If I have to wait 5 years to get the full tax benefit then the money
becomes stagnant and it doesn't help any one.

The idea of the stock market has historically been a way for people to
inject capital into industries and the money is supposed to be made by
operating that industry. The stock holder gets paid in dividends from
the profits of that industry. When it degraded to the idea of money
simply making money, the model breaks down and you get bubble/bust
stock cycles. It also does nothing to provide jobs for anyone but the
guys who empty the shredder baskets at the hedge funds to hide their
frauds.

Funny. Capital provides jobs, I don't see UAW coughing up $500K per
employee to buy equipment. It takes capital.

And capital is just like people, it doesn't go to work for nothing.
Dividends, interests or appreciation must well exceed taxation and
inflation or you don't invest.

I let tons of cash sitting around doing nothing before I invest in a
money losing mutt in a depreciating economy with higher taxes and greed
looking to screw me. I need to see the return or no invest.

For the savvy, boom and bust is good. But agree in that the personal
record amount money I made on it should not have occurred. In a stable
econmy, I should get a 5-8% yeild and not a 30%/yr windfall compounded
two years in a row. But ponzi government/bank fraud makes economic
stability impossible and is the cause of it.

Key is stability, and the Obamanation is de-stabilizing fast.
Debt-corruption economics isn't working because government isn't the
solution, government is the problem. And it isn't just DC, it is state
side and even civic.
--
Government isn't the solution to the bad economy, it is the problem.