Nothing like manipulating markets
I could learn to like it.
We don’t need tax incentives to put our hard-earned money into the stock market.
Want to help us out? How about cutting Income taxes to zero of all in this country who earn $250,000 or less. And cut all sales taxes and user-fee taxes.
Let us spend that edition money however we see fit.
I am in general agreement with the sentiment, but I believe that sales tax is best method to achieve the goal.
Eliminate all income taxes.
Sales tax allows people to choose how to spend their money with full knowledge of the amount of taxes they are paying. Corporate income taxes intentionally hide that cost in the price of the product.
Amazingly enough, the stock market still in 2020 has less participation from the rank and file citizens than it did in 2007. After watching their retirement savings get blown up in 2000 and 2007, many persons have since refused to return to the markets as they don’t want to be taken for suckers again. However the domestic markets have more than recovered what was lost between 2007 and 2009 and doubled its previous 2007 high. So those who stayed in all along have done very well. But there is still a great deal of money on the sidelines that has sat out this bull market all that time.
So how, one asks, are the markets still rising? It’s mostly via corporate buybacks and capital flight from other countries around the world. The EU and China in particular, but not limited to them. Corporate buybacks have been the rage and the financial news and commentary sites have numerous articles about them. But international capital flight, on the other hand, is a much lesser known and little understood yet vitally important facet of the big picture.
First thing to understand about capital movement is that excess capital tends to flow toward where it is best treated. As much as the socialists absolutely hate that; they can’t entirely prevent it though they do try pretty hard. Witness China’s capital controls, for instance. A domestic example of capital flight might be the movement of jobs and manufacturing out of states with poor business climates to states with better business climates. The same sort of thing happens on an international level as well. Many examples with different asset classes can be found with a little research on one’s part.
Back on topic, I view this as an attempt to get the suckers to buy the all time highs so the 1% will have somebody to dump their holdings off on. Just my opinion. I strongly suggest to do your own due diligence.
Sorry, Friend, I do not believe in taxing people (i.e., sales tax) when they purchase stuff. Free trade is the best way to go to keep an economy going. The best sale days in Texas are the tax-free (sales) weekends sponsored in August.
Based on the article, it just sounds like a cut to capital gains taxes. It is not clear if it would be targeted at average Americans, or just another way to shield income for those who already have lots of income.
One easy way to do the same thing would be to give a 401(k)-like option to Americans without access to a 401(k) at work. The traditional IRA is much less attractive. If we could make it easy for young people to put away pre-tax dollars, more of them would. (Of course, some just won’t, no matter the incentive.)