DU POLL: Will Capitalism as we see it today eventually fail?

[jpljr77]

24. We're a lot closer to a much better system than anyone realizes, I think.

President Obama has proposed to raise the long-term capital gains tax rate to 20% from the current 15% (for high-income earners) and more importantly, to once again recognize dividend income as ordinary income, with the tax rate on that income falling wherever it falls for individuals based on their total income (dividends are currently taxed at 15%, like long-term capital gains).

This is a HUGE shift from the past 10 years, where incentives to passively invest wealth outstripped incentives to start businesses and spend, which might actually help the economy. I think economics students in the very near future will be studying the effects of the "disastrous" Bush tax cuts. It's been so bad.

Combine that with two things that have already happened and can't be reversed (a very muscular Consumer Financial Protection Agency and, of course, healthcare reform) and we're fairly rapidly moving toward a better state.

It's hard to see through all the noise, but if we step back, it's coming around (in my opinion).