12/10/2009 9:34 AM
Chuck Tidd wrote: Regarding your 12/10 program and your discussion about tax rates on stock investments (as you and I briefly discussed after the show), I recall that, unless the law has changed, tax rates on short-term investments (<1 year?) fall under short-term cap gains which was a pretty steep tax rate. Furthermore, while the long-term cap gains tax rate may be only 15%, the rationale, perhaps outdated, was to create a pool of money to stimulate business investment. Since investment carries risk, no one would be interested in investing if it was taxed at regular income rates. The long range effect of a low cap gains rate may be socio-economic stratification, but what would happen to economic investment if the rate was changed too drastically? Reply to this
Regarding your 12/10 program and your discussion about tax rates on stock investments (as you and I briefly discussed after the show), I recall that, unless the law has changed, tax rates on short-term investments (<1 year?) fall under short-term cap gains which was a pretty steep tax rate. Furthermore, while the long-term cap gains tax rate may be only 15%, the rationale, perhaps outdated, was to create a pool of money to stimulate business investment. Since investment carries risk, no one would be interested in investing if it was taxed at regular income rates. The long range effect of a low cap gains rate may be socio-economic stratification, but what would happen to economic investment if the rate was changed too drastically?
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IJWTS wow! Why can't I think of tnhigs like that?
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Walking in the pesrnece of giants here. Cool thinking all around!
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