Perry's NumbNuts Tax Plan

[Texas Contrarian]

Originally Posted by TexTushHog

CaptainMidnight, I agree in principle with most of your points. As for capital gains rates, sure, I consider holding things longer if I've got a gain, or try to sell an offsetting loss just like everybody else. But when an investment reaches a point where it is no longer attractive, I sell it and so will everybody else.

Maybe, maybe not.

If you were to merely return the cap gains tax rate to 20% (where it was before it was cut to 15% in 2003) it probably wouldn't make a lot of difference to anyone's sell/no sell decision. But if you were to raise it to 35% or 40%, for example, many people would make some very different decisions. History has shown that quite convincingly.

Originally Posted by TexTushHog

In marginal cases, significant increases will cause more long term holding of stock. But why is that necessarily bad?

It's hard to say that it's "necessarily bad", but high cap gains tax rates can cause what's called a "lock-in" effect. People have long debated the extent to which the capital gains tax rate impedes the flow of capital to its highest and best use, and the extent to which it may affect economic growth. Some politicians disingenuously make the exaggerated claim that raising the rate at all would "completely destroy capital formation", while those on the other side claim that a cap gains tax rate lower that that on ordinary income does not serve any purpose and is a "giveaway to the wealthy."

Suffice it to say that the dynamic relationship between the capital gains tax rate, capital formation and allocation, and economic growth is quite complex and hardly capable of being easily or effectively modeled. This CBO piece from 2002 addresses a few key points:

http://www.cbo.gov/doc.cfm?index=3856&type=0

You might also note that although Europe's social democracies hardly are lacking in desire to impose high taxes on the wealthy, they apply a lower tax rate on capital gains. There are good reasons for that.

[CuteOldGuy]

Then you probably support the DH! Heathen!

[TexTushHog]

Originally Posted by CuteOldGuy

Then you probably support the DH! Heathen!

Nothing worse that watching a pitcher foundering around at the plate.

[CuteOldGuy]

Baseball is a game of strategery. Knowing what to do with the pitcher's spot is essential to the game.

You've pissed me off before, TTH, but supporting the DH rule is unforgivable!

[Doove]

Originally Posted by TexTushHog

Why would you claim it's not fair to walk poujols, even though that is a very weak analogy.

Particularly when the most popular sport in America partakes in revenue sharing on a pretty grand scale. Socialism anyone?

[CuteOldGuy]

Jesus, Doove. Get over yourself. BTW, where's that definition of fairness?

[Doove]

Originally Posted by CuteOldGuy

Jesus, Doove. Get over yourself.

Really? That's your response to.......what exactly?

[CuteOldGuy]

Calling baseball socialist, which is ridiculous. If a private organization wants to practice revenue sharing it is not socialist. Socialism refers to government activity.

You're an idiot, but you are entertaining.

[Doove]

Originally Posted by CuteOldGuy

Calling baseball socialist, which is ridiculous. If a private organization wants to practice revenue sharing it is not socialist. Socialism refers to government activity.

You're an idiot, but you are entertaining.

So, you can use a sports analogy, but when i do it (i was referring to football, by the way) i'm an idiot? And i need to "get over myself"? Really?

Classy.

I'd like to think Captainmidnight would show some intellectual consistency here, but i won't hold my breath.

[CuteOldGuy]

LOL! Doove, you're amazing. My analogy made sense, yours doesn't. Do your parents know you get on the computer?

[Doove]

Originally Posted by CuteOldGuy

LOL! Doove, you're amazing. My analogy made sense, yours doesn't.

Possibly the most successful sports league practices socialism, and that analogy doesn't make sense to you. Intentionally walking Albert Pujols, on the other hand....

Do your parents know you get on the computer?

It's better than "your mother wears army boots".....but not by much.

[CuteOldGuy]

Here's the problem. It's not socialism if the government isn't doing it. Savvy?

But you are entertaining, I'll give you that.

[Doove]

Originally Posted by CuteOldGuy

Here's the problem. It's not socialism if the government isn't doing it. Savvy?

a·nal·o·gy   [uh-nal-uh-jee] Show IPA
noun, plural -gies.

1.a similarity between like features of two things, on which a comparison may be based: the analogy between the heart and a pump.

But you are entertaining, I'll give you that.

Just how many times are you going to use that line?

Dude, get some new material.

[IIFFOFRDB]

Originally Posted by Jackie S

In short time, Gov. Good Hair will go back to Texas and do what he does best, that being Governor of Texas. Which, if any body knows anything about how Texas is run, really doesn't need a Governor. It is more of a figure head position than a true position of power.

As for Cain, at least he isn't as incompetent as the Idiot in Chief that we have now.

We have to do better.

Very well said.

[CuteOldGuy]

Well then, your analogy failed. But you are still fun to watch.