Wednesday, August 31, 2011

Fixing the U. S. Economy with Capital Gains Tax Reductions

Yeah, The Problem is a Huge Capital Gains Tax Rate of 15%

Writing in the Wall Street Journal opinion pages under the heading

Edward R. Muller and Larry Zimpleman write that the U. S. can encourage entrepreneurs by, for example, “letting in immigrant entrepreneurs who hire American workers”, thus creating a massive federal bureaucracy  necessary to monitor and enforce such a program and “giving licensing rights to academic entrepreneurs at universities", thus giving away public research dollars, and “having government provide data to rankings of startup friendliness of states and localities" , thus getting the feds involved in a dubious activity.

They also include this recommendation

Steve Jobs and Tom Wozniak - Created Apple
But Only Because they didn't know how high
capital gains taxes were.

Reducing the cost of capital through capital gains tax relief for early stage investments

Thus repeating once again the old, tired, worn out and discredited idea that it is high taxation that is obstructing business creation in the United States. 

In arguments like this the burden of proof is on those who proposed change.  Is anyone aware of any significant evidence that it is the high capital gains taxation rate of, get this, 15% that is stopping entrepreneurs from starting businesses? 

On the other hand, just mentioning “cutting capital gains taxes” is all that is necessary to get your right wing rantings printed in the Wall Street Journal opinion section.

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