Someone explain to me (stock market question)

[DerrickTulips]

How increasing the tax on capital gains, will help the stock market and the economy? This seems like the absolute worst thing to do. I'm sure people will invest more in the market knowing that they will be taxed a higher %


On a completely different side, how does Obama think he is gonna be able to afford 700 billion to 1 trillion dollars of increased government spending that he is planning to add?

 

[DerrickTulips]

Anyone?

 

[smurphy]

It won't deter long term investors in the least, since they generally don't cash their investments. It will effect short term traders, but how much? Isn't this simply a return to Clinton levels? I seem to remember an awful lot of stock activity in the 90's.

 

[DOGS THAT BARK]

It won't deter long term investors in the least, since they generally don't cash their investments. It will effect short term traders, but how much? Isn't this simply a return to Clinton levels? I seem to remember an awful lot of stock activity in the 90's.

Which part Smurph the boom or bust--

Economy runs in cycles--but can have have adverse effects that make matters worse--like natural and man made disasters.

Who is in power has little to do with it.

The next president should have rough going at start--but look like hero at end of term.

Is amazing how pres get credit (good and bad)for things they have little control over.

Classic examples--Clinton and job creation in his term
--01 and 02 we were coming of highest unemployment figures since Carter--so what are chances you'll have job increase when you come in office at low employment if economy cycles continue as in past--about 100%

--another classic myth--do search on Clinton on
Welfare Reform and you will see most references giving him credit --what you won't find is he did everything he could to halt it--he vetoed it twice before the GOP put sqeeze on him with Contract with America.

Regardless of which political party--#'s can munipulated to produce about any result.

 

[smurphy]

Wayne , that's not the topic. I agree with most of what you are saying by the way.

My point is that if we return to the levels of capital gains taxes that we had during the Clinton years, then it does not seem to deter stock investments. Clearly the overwhelming factor is simply a bad or good market.

 

[djv]

Clinton wanted welfare reform. It took time but they got it done right.
AS for cap gains little affect unless they go to high. Some companies will get around them by being clever.
One thing for sure they need a jobs program like Clinton's.

 

[DOGS THAT BARK]

Wayne , that's not the topic. I agree with most of what you are saying by the way.

My point is that if we return to the levels of capital gains taxes that we had during the Clinton years, then it does not seem to deter stock investments. Clearly the overwhelming factor is simply a bad or good market.

Sorry Smurph I was off topic--

My answer would be it is never good to punish prudent people for saving via taxes.

or problem will never be we have too many people saving--it will be those that spend to much and save to little.

You can't reward the latter by taking from the savers.


--I think I said before--if O tries to raise capital gains tax I will liquidate ever non tax defered stock I have--and move it "other places" or purchased property when prices get right--and always tax free bonds--

I would certainly expect many to do the same--which will ulitimately reduce his tax revenue even with increase in taxes.