Money

Question: Taxing royalites, dividends, and interests takes money out of the economy. why do it?

(Posted by: TAT on 2010-03-09 13:39:43)

The effect of the 2.9 % tax on dividends, interest, royalties, and rental income to fund medicaid is is estimated to generate $234 billion, and if you add capital gains into the mix that number increases to $334 billion. That is around one- third of a trillion dollars that is being taken out of the private sector and being pumped into a drowning entitlement program. "With a less productive economy, there would be fewer job opportunities ... Thus, wages and salaries are estimated to fall by an average of $14 billion per year nominally ... Taxing the investment income of high- income individuals is estimated to reduce the economy's potential by an average $10.2 billion per year. That is $102 billion of real accumulated lost opportunities over 10 years. " If taxing the filthy rich is going to reduce the economy's potential by 10 billion, should we reconsider ? Higher unemployment will reduce the tax revenue and eventually make the tax increase more expensive. so why raise taxes on these things http:/ / www.humanevents.com/ article.php?i…

Posted by: John J. S on 2010-03-09, 13:56:29

I guess it depends on what you do with all that money. Spending it is moving it, even if the entitlement recipients spend it. Investing in mortgage default swaps is only fueling an inflationary bubble that eventually pops like a boil.

Posted by: Doorstop on 2010-03-09, 13:56:04

Tell your elderly relatives you want to cancel their medicare and social security. It is a quality of life issues, not a money issue. People before profit.

Posted by: nita5267 on 2010-03-09, 14:30:37

I don't think the government is truly concerned about the economy or the people paying taxes, they are only worried about the money the government is going to receive. The more they tax you, the better off they are.