Capital Gains and the Buffett Rule

The Buffett rule is designed to raise the tax rate on Capital Gains.  It is Obama's shiny new toy.  He knows it will not raise revenue:  In recorded history, since the Kennedy tax cuts, lowering rates has increased revenue, while raising rates has decreased revenue.  Obama can say that raising the rates will increase revenue (by a very small amount), but this is because of "static scoring".  In other words, if the tax does not change behavior, the increased rate will increase revenue.  BUT TAXES DO CHANGE BEHAVIOR.  Does any one not know this!  Okay, so I guess the people that do not pay taxes do not know this, but they are the ones that are going to get screwed.  Good for Obama, hurting the people he claims to want to help, so that he will get re elected.  Or maybe since he never had a job, he doesn't know.  His accountants, though, know.  On his last tax return, he gave the annual gift tax exemption amount to his kids:  Good for him, but I really doubt he knows why.  I guess this exemption changed even Mr. "Hope and Change's" behavior.  That is what taxes do:  If you want less of something, YOU TAX IT.

My other pet peeve, that absolutely no one mentions, is the reason for the Cap Gains rate to begin with.  If I bought a stock for one dollar, 12 years ago, and bread costs one dollar back then, my one dollar would have bought either: The stock or the loaf of bread.  Today, my stock is worth 2 dollars, and bread costs 2 dollars.  If I sell my stock, I pay taxes on the 1 dollar gain. Under the Obama proposal, I would pay 30% on the gain, so I would now have $1.70 to buy that $2 dollar loaf.  I LOST MONEY!  How is this fair?  Why not just put a gun to my head and take my money.

For all you Obama nincompoops, there are 2 rates for the gains from the sale of assets:  The rate for short term gain (which is the same as the Ordinary income rate) and the Long Term rate, which is less.  It is the long term rate that Obama wants to raise to the ordinary income rate.  Great!  So if there is inflation, there is less incentive to invest.  Thus, the rate changes behavior.  When was the last time there was no inflation--1929?

Obama just wants to con the stupid class into voting for him.  That, or he doesn't have a clue.  Either way, it is pretty scarry.

 
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