Thursday, February 16, 2012

On How To Deal With Capital Gains

It has come to my attention that this country is embroiled yet again in the travesty that is referred to as "campaigning".

Having dropped out of the last election, I promised that myself that I would not participate in another of these horrific events.  But I made the mistake of watching the news and upon learning of the current state of affairs I came to the inevitable conclusion.

Americans are idiots who need someone to point that out.

I have returned.

There has been a great deal of talk lately about the so called "1%" and the need to encourage them to invest.  That it is their investments that fuel the economy and make life better for the remaining 99%.  That it is wise to keep taxes on such investments low.

There is a concept known as "Economic Efficiency".  I will not explain it to you.  I trust you can follow the link and read.

When people put their money into investments they are making a guess at what people want.  When people put their money into buying things they want they know what people want because that's what they want.

Investing leads to companies like Webvan and  Buying leads to companies like Apple.

I propose that instead of lowering the capital gains tax, we increase it.

As I have said before, we should progressively tax all income with a cap of 100% for those making 10 times the median income.  Nobody needs more than that.  I don't.  And I do just fine.

Think about it.

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