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Investment is key, and it's silly to argue that tax hikes wouldn't reduce it.
Gotta wonder if this author actually believes his trickle down nonsense or if he's just getting paid to spew stuff he thinks he can make others believe. He brags about how much the top 5% save and invest, but none of what gets "saved" in the Cayman Islands does anything for our economy. The real economic drivers are those who spend most of their income. That's who he'd like to rob of their earned benefits - not "entitlements".
Here's a thought - why don't people actually plow it back into, you know, making things here in the US? Then it would be expensed. Much better than "investing" it in the Caymans or Switzerland, or using it to buy and trash companies.
lee4713 - Here's a thought - people of all income levels invest, to the best of their knowledge and ability, where they will earn the greatest return relative to risk. If all else is equal, taxing the return on an investment in the US will not earn more revenue and punish the rich. It will encourage more investment where they can escape that tax.
The nation certainly doesn't need the advice of a corporate raider who specialized in borrowing against the assets of vulnerable firms, dismembering them, selling their pieces and assets while saddling the eviscerated remnants with the debt incurred which financed the raid. Oh and you need to add the costs of the enormous fees collected by the pirates who staged the raid. Welcome to the warped world of private equity firms brought to you courtesy of the US tax code. No class warfare here. Jobs created--a few. Jobs decimated--often many. Wages and benefits to workers--savaged or lost. New products and services developed--usually none. Communities gutted--yes. Firm profitability--usually marginal through laying off workers and cutting capital/investment costs. Nice short term strategy for the spread sheets. Benefit to the economy--not much if at all. But the equity investors get rich or should I say richer. What a recipe for economic and job growth for America! Equity investors love to make deals--just not the goods or services that consumers wish to purchase. Elevators in the garage anyone?
Just another thought--all investments are not created equally. Some produce actual growth some produce--well nothing but generate enormous profits. Am American investment firm once purchased the medieval sewer system of a German city and then leased the sewers back to the city. Our 'equal opportunity for everyone tax code' made it possible. Nothing was created except a 'deal'. The arrangement was profitable for everyone involved--except the American economy. Gotta love those Ivy League tax attorneys and MBAs.
If I said "what a moron", the censors would block the post, so I won't... 1) WHO benefits? Even fools who invest invest in areas of high return relative to risk. A tax cut on those with income to invest can choose to invest their windfalls in US investments at net 2-3% or solid Chinese and Indian investments at net 15-18%. I wonder in whose economy they will put the money? 2) What KIND of investment do we get? Give a CEO, Doctor, lawyer, sports player, or executive a tax break, and they will almost all invest the money in equities or real estate or partnerships. Give the middle class, especially the lower middle class, the break, and some of them will have that little bit they need to start a small business. New jobs come from small businesses, not banks or finance houses screening and running safe investment portfolios and REITs...
The old regressive con job . Why would the economy suffer when in taxing wealth, that tax money is spent immediately in the deficit ridden economy, driving the market, creating jobs from the demand side. Where is it different, keeping it in the hands of the wealthy for them to invest from the supply side. Seems to me business is sitting on 2 trillion and banks at 1 trillion both of them hiding it under the pillows. So it would be best for our economy to tax them, by the way we need the money.
And - investment and taxes, dividends vs growth. Build a small business by reinvesting gain in employees and production so as to have minimal profits, and you pay no taxes as your wealth grows. Invest for profit, and you pay taxes on your profits after each transaction. One is long term investment and a stable community influence, the other short term and with no community benefit. Buffet is famous for the long term investing, and he didn't get rich doing short term.
Obama isn't interested in doing what will help the economy, he's just interested in wealth redistribion and what he consideres "fairness". All we have to do is look at the failing socialist economies in Europe to see that his idiology doesn't work.
greg62: "Obama isn't interested in doing what will help the economy, he's just interested in wealth redistribion..." What a tired old right-wing saw. Straight from FOX and 100% fact-free. The biggest wealth redistribution has occurred in the last 30 years siphoning off wealth and income from the middle class and giving it to the top 5% who stash it in foreign bank accounts or invest in companies who are building and hiring abroad. End the tax deduction for facilities and wages paid in foreign countries and watch investment and jobs in the UNITED STATES rebound. And capital gains taxes should be at least 25% for gains above $50,000. Maybe the first $50,000 is free. That will protect most Americans and hit the hedge fund managers and other billionaires who can afford to pay their fair share instead of slipping by on 15% taxes while middle class workers pay 20% or more for actually producing something.
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