Does anyone realize what the GOP just did?

[quaker bill]

60. It is BS

First, the rich actually want to do business here. It is the biggest economy on the planet, so raising the cost of admission will not drive them off.

Second, tax rates do effect wealth accumulation by the 1%. There is massive amounts of evidence in economic statistics that prove this. The wealthy argued for lower tax rates because it would help them get rich faster.

Third, all "investment" is not equal. In the current market many vehicles for profitable investment produce few if any jobs. They are the functional equivalent in society of going to the race track and betting on the ponies. This can be good for the race track owner or the brokerage firm, but little more.

Fourth, the entire economy is a cycle, every cost is always passed on, no one is immune. However, the data is clear that cash flows through the economy until it lands in the pocket of the wealthy, where it stops. This is why they get wealthy faster and faster, because more and more money stops moving when it gets into their accounts. Collecting a slice of it and putting it back into circulation will not prevent them from getting quite wealthy over time, but makes the process slower. In short, done right, the wealthy will need to produce more businesses, jobs, and such over a longer period to get to the same place.

Finally, passive gains need to be taxed at a much higher rate than business activity. If speculating in commodities is the easy path to fast money, prepare to pay more for gasoline. When speculating in electricity futures was the way to fast money, we got ENRON. ENRON did not produce a thing other than artificial shortages to boost asset valuations. This form of investment needs to be taxed out of existence. Actual venture capital investment in anything that produces real jobs making actual products, should be favored with lower tax rates. I like the notion that if you are not ready and able to accept actual delivery of 10 tons of wheat, or a tanker full of crude, then you have no business owning it.