tag:blogger.com,1999:blog-2836339018444123313.post393358282290054571..comments2023-09-14T21:37:39.544-07:00Comments on U.S. Budget and Economy: Do Capital Gains Tax Cuts Raise Revenue?R Davishttp://www.blogger.com/profile/00681139511824861368noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2836339018444123313.post-10649880002687432112012-09-29T16:15:26.909-07:002012-09-29T16:15:26.909-07:00Any person with common sense understands that more...Any person with common sense understands that more volume and activity leads to bigger revenues. If one sold 100 widgets and made 15% on the sale, the revenue would be much larger than selling 10 widgets at 28% profit.<br /><br />Similarly, if Obama raised the capital gains tax to 28% from 15% (nearly doubling it), capital investment would diminish by more than the same proportion (one-half) expecially of an extended period of years the higher tax rate would be on the books. <br /><br />Lower profit margins on larger volumes ALWAYS beats higher margins on smaller volume due to removal of any ceiling on increased volume. Contrast to raising taxes so high to the point where all economic activity ceases. This is simple economics. <br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-23103883121356986782010-11-25T20:36:12.246-08:002010-11-25T20:36:12.246-08:00Just look at regans cut of capital gains taxes. I ...Just look at regans cut of capital gains taxes. I believe<br />in the late seventies and early eightys. Revenue went up 90%. Some of that was coming out of recession but the facts show that a tax cut has never never lowered revenue. Ever. U can spin it anyway u want. Those are the facts<br />every business person I know is going to sell a lot of stock <br />this year because they know the tax rate is going up<br />doesn't take an economic genius to figure out that they will hold on to an investment much longer if rates go up. That is why revenues go down. DAAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-83396123812589637882010-10-06T00:35:13.186-07:002010-10-06T00:35:13.186-07:00Your quote is correct (as is mine). Still, Obama ...Your quote is correct (as is mine). Still, Obama did not concede that "when you raise capital gains tax rates, you lower revenues from that" as Will said. He simply didn't address that contention in your quote above and said that he would look at raising capital gains rates for the purpose of fairness. And in my quote, he did say that it "might happen, or it might not".R Davishttps://www.blogger.com/profile/00681139511824861368noreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-9327312162266109092010-10-05T15:29:43.542-07:002010-10-05T15:29:43.542-07:00You didn't accurately reference Obama's qu...You didn't accurately reference Obama's quote about capital gains and his reasoning...or for that matter Charlie Gibson reference only talking about the capital tax cuts under Clinton and Bush...Here is cut and paste from the transcript. <br /><br />GIBSON: Senator Obama, you both have now just taken this pledge on people under $250,000 -- and 200-and-what? $250,000? <br /><br />OBAMA: Well, it depends on how you calculate it, but it would be between $200,000 and $250,000. <br /><br />GIBSON: All right. You have, however, said you would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, "I certainly would not go above what existed under Bill Clinton," which was 28 percent. It's now 15 percent. That's almost a doubling, if you went to 28 percent. <br /><br />But actually, Bill Clinton, in 1997, signed legislation that dropped the capital gains tax to 20 percent. <br /><br />OBAMA: Right. <br /><br />GIBSON: And George Bush has taken it down to 15 percent. <br /><br />OBAMA: Right. <br /><br />GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. <br /><br />So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected? <br /><br />OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-54364073095273705172008-10-14T16:10:00.000-07:002008-10-14T16:10:00.000-07:00http://www.house.gov/jec/fiscal/tx-grwth/capgain/c...http://www.house.gov/jec/fiscal/tx-grwth/capgain/capgain.htmAnonymousnoreply@blogger.com