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Mon Jan 30, 2012, 01:11 AM

The income gap in this country is going to continue to rise unless we tax all income...

The same way.

Giving Capital Gains tax breaks is forcing more and more emphasis to be on how the stock of the company is perceived and not always, how it performs in the market place.

All the major discussion makers are vested in keeping the stock that they earn through option plans rising at whatever cost.

And with billions of shares of stock transacting each and every day, the pressure is on to keep the investors happy.

But are they really investors?

They are more like margin hunters who shave off profits from companies. The problem is there is no real consequence. Even the short-term capital gains rate is far lower than the highest marginal tax rate.

So if you make a couple of million dollars of salary, you pay about 39% on taxable income.

If you make a couple of million moving stock from here to there, your highest rate is still four percent below what you would make from earning a wage or salary.

The thing is this; there is an investor driven motivation margin on the value of stock.

And since the people who are running the company feel that the shareholders are more import, mainly because they are shareholders, they just might not make the most economical decision and choose to go to taking action to increase the value of the stock.

Now this really gets us down to the FoxComm thing.

The large computer companies are willing to shave the money to pay for workers in order to increase the value of the stock.

With technology and shipping put into the mix, I wonder just how profitable selling stuff here in the US of A would be if there were a tax on overseas manufacturing, you know, make it a little bit more competitive.

That is why all these trade agreements go the way they do. The companies, who have set up shop in the third world, mainly with US and European investments, have it both ways. They keep their profit margins high and still sell like crazy here in the biggest market in the world.

And then of course, there is all this emphasis on credit and must have things feeling in America today. That makes up nicely for the whole in the wallet that all this capital manipulation has put in the pockets of most Americans, you know, the 99% thank you very much.

But there will be a tipping point if the people here in this country can no longer afford the newest do dads and whatchacallits...

ThenÖ.

We have a lot of work to do to reshape this country. Perhaps the kids that now canít afford to move out of the house until they are thirty may be just like my grandparents who never got over the fear of the Great Depression.

Who knows?

The bottom line, our culture has to change.

And I donít care how much anyone dislikes the actions of president Obama. I cringe as I look at those loathsome margin chasers on the other side salivating to get the reins of power back so they can shovel more money at the rest of the 1%.

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Reply The income gap in this country is going to continue to rise unless we tax all income... (Original post)
WCGreen Jan 2012 OP
WCGreen Jan 2012 #1

Response to WCGreen (Original post)

Mon Jan 30, 2012, 02:37 PM

1. kick

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