Comments on: Taxes and the Myth of Fairness http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/ Tue, 07 Oct 2008 07:41:10 +0000 http://wordpress.org/?v=2.3.1 By: Eric T http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/#comment-545 Eric T Wed, 23 Apr 2008 01:20:36 +0000 http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/#comment-545 I think Ceo's getting paid by with stock is good motivation to make the stock perform. If they were paid a salary that is not tied to the performance of the company, if they run the company into the ground they still would get the same pay. The performance based pay is good for CEO's to make sure they can make the companies stock continue to grow and be a good place for investors to put money from pension fund, IRA's, 401k's and get a decent return. If anyone trades stocks, you know that you take a big risk. Many times you lose money. If you are sucessful, why should you have to give the government more. If I take the risk and lose the government ain't there wanting to share the loss and refund me for the loss. Taxing the gains will discourge people from stock trading. I think Ceo’s getting paid by with stock is good motivation to make the stock perform. If they were paid a salary that is not tied to the performance of the company, if they run the company into the ground they still would get the same pay. The performance based pay is good for CEO’s to make sure they can make the companies stock continue to grow and be a good place for investors to put money from pension fund, IRA’s, 401k’s and get a decent return.

If anyone trades stocks, you know that you take a big risk. Many times you lose money. If you are sucessful, why should you have to give the government more. If I take the risk and lose the government ain’t there wanting to share the loss and refund me for the loss. Taxing the gains will discourge people from stock trading.

]]> By: KMorrison http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/#comment-534 KMorrison Tue, 22 Apr 2008 14:27:34 +0000 http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/#comment-534 Raising taxes when the economy is strong is different that raising taxes when the economy is struggling. Basic Econ 101 will tell you that raising taxes in a sluggish economy is harmful and erases any potential for a recovery. My arguement isn't that it's 'fair' that the wealthy have more options, it's that 'fairness' is irrelevant. The middle class is hurt proportionally much more than the rich when the economy is poor. A plan based on an unfounded 'fairness' argument which actually sticks it to the middle class in the end shows an inability of some Dems to understand basic economic principlals. Raising taxes when the economy is strong is different that raising taxes when the economy is struggling. Basic Econ 101 will tell you that raising taxes in a sluggish economy is harmful and erases any potential for a recovery. My arguement isn’t that it’s ‘fair’ that the wealthy have more options, it’s that ‘fairness’ is irrelevant. The middle class is hurt proportionally much more than the rich when the economy is poor. A plan based on an unfounded ‘fairness’ argument which actually sticks it to the middle class in the end shows an inability of some Dems to understand basic economic principlals.

]]> By: congressive http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/#comment-528 congressive Tue, 22 Apr 2008 03:38:29 +0000 http://mccain.blogsforvictory.com/2008/04/21/taxes-and-the-myth-of-fairness/#comment-528 I was disappointed that Obama didn't call out Gibson on his big giant sandbag. Sliced and carefully parsed, cutting capital gains taxes increases capital gains revenues. But this on the whole is a lie to say cutting capital gains raises revenue. It does not. CEO millionaires can choose how they are to be paid. When Steve Jobs takes one dollar as salary, and the rest of his compensation as stock, he is paying salary taxes on one dollar and 15% on hundreds of millions of dollars of non-salary stocks. Even when his stocks go underwater, they just re-vest him again, so he's gonna make millions. This is no accident. Dropping capital gains tax forces a shift in compensation away from million dollar salaries, the sum total long range effect is a DROP in overall taxes, wages AND capital gains, from millionaires, but not from working stiffs. Working stiffs can't pull off this neat little trick and must pay the higher amount. If cap gains were to drop to ten percent, there would be another rush to cash out and take advantage of the drop, resulting in a quick increase in cap gains tax collected, but long range even more boardroom cronies would shift their salaries away from the higher "wages" designation and into the lower "capital gains" column, once again leaving the working class holding the bag. Low taxes stimulate millionaire growth, not the whole economy. Higher taxes during Clinton's administration (thanks to GHW Bush who raised them) not only didn't hurt the economy, but contributed to the floating of all boats. Bush's cut after cut after cut should have resulted in the most affluent nation on earth, but in fact we work over four hundred and fifty hours MORE per year than Norway, but make over five thousand bucks LESS per year, and their overall tax revenue as a percentage of GDP was 43.6 percent. Trust John McCain when HE says he doesn't know much about economics. He doesn't. Unless you're calling him a liar. I was disappointed that Obama didn’t call out Gibson on his big giant sandbag. Sliced and carefully parsed, cutting capital gains taxes increases capital gains revenues. But this on the whole is a lie to say cutting capital gains raises revenue. It does not.

CEO millionaires can choose how they are to be paid. When Steve Jobs takes one dollar as salary, and the rest of his compensation as stock, he is paying salary taxes on one dollar and 15% on hundreds of millions of dollars of non-salary stocks. Even when his stocks go underwater, they just re-vest him again, so he’s gonna make millions. This is no accident.

Dropping capital gains tax forces a shift in compensation away from million dollar salaries, the sum total long range effect is a DROP in overall taxes, wages AND capital gains, from millionaires, but not from working stiffs. Working stiffs can’t pull off this neat little trick and must pay the higher amount.

If cap gains were to drop to ten percent, there would be another rush to cash out and take advantage of the drop, resulting in a quick increase in cap gains tax collected, but long range even more boardroom cronies would shift their salaries away from the higher “wages” designation and into the lower “capital gains” column, once again leaving the working class holding the bag.

Low taxes stimulate millionaire growth, not the whole economy. Higher taxes during Clinton’s administration (thanks to GHW Bush who raised them) not only didn’t hurt the economy, but contributed to the floating of all boats. Bush’s cut after cut after cut should have resulted in the most affluent nation on earth, but in fact we work over four hundred and fifty hours MORE per year than Norway, but make over five thousand bucks LESS per year, and their overall tax revenue as a percentage of GDP was 43.6 percent.

Trust John McCain when HE says he doesn’t know much about economics. He doesn’t. Unless you’re calling him a liar.

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