WITH THE COMING INCREASE IN CAPITAL GAINS TAXES, WILL PEOPLE BE LESS INCLINED TO INVEST?

Less people shopping stock.. leads to reduction income for the company.. leads to aloft cost of products as well as services… leads to…

Profit? I do not consider so.

{ 5 comments }

Shhhhh August 27, 2011 at 5:27 am

These upcoming higher taxes are absolutely going to kill this economy… even more than its beaten already. No one will invest knowing in the end their reward will be markedly less. Awesome government at work.

aceofspd August 27, 2011 at 5:50 am

2 things, stock prices do not effect the company’s supply of money.
Since almost everyone is in the hole, there will be no capital gains for many years. First you have to get back to zero. Since that is going to take many years and the fact that you do not pay capital gains until you sell, most people will continue to invest. Also, the chances of the law being changed again, are almost 100%

Space Invader101 August 27, 2011 at 6:23 am

When you think about the magnitude of losses people made in 2008. I don’t think anyone’s going to be paying any tax in 2009. They’ll just be claiming their losses against their profits this year, the next year, the year after that etc Ha Ha

I think the government will have a lot of catching up to do with capital gains tax revenue.

What you’re forgetting about is the IMF’s bigger concern. The property market. This might make property investors more likely to buy for rental income instead of selling for capital gain. That would help to reduce the supply in an effort to stabilize the housing market.

Beau.Gus August 27, 2011 at 6:24 am

“Capital gains” taxes are largely a voluntary tax…if you do not wish to pay them, do not “realize” your gains, reinvest them….

But the whole question of raising the tax is a “red herring” anyway…Last year, just under 13 percent of all who filed tax returns for 2006 reported ANY capital gains income, however small. That means that raising capital gains tax rates could not affect 87 percent of all filers, since they have no gains income to tax.

Thor August 27, 2011 at 6:59 am

The Republican Supply Side tax cuts for the rich have the economy booming right?

Since they cut those capital gains to some of the lowest in history we should be all rich by now RIGHT?

How did that work out for us?

Feeling trickled on yet?

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