Wednesday, August 29, 2012

GOP Convention: Day III

    Missed it!  It was too hot, I had rehearsals for a new play, I knew it would be the SOS, so ...  But I do have a question.  What's the short argument in favor of lower taxes for investors?  Needless to say, investors, like the Mittster,  pay roughly 15% on their profits while the rest of us pay about 35% on our wages.  So the short argument is that the tax break is an incentive, it encourages investors to invest, which creates jobs, which give consumers money they can then spend on products - right?  Sounds pretty good, don't  you think?
    But to buy that argument, you'd have to believe that an investor who saw an opportunity to put his money in a profitable business wouldn't do it unless he knew he was getting that extra 20%.  Rather than make a smaller profit,  he would let his money sit under the mattress and make nothing.  I can't see anyone doing that, unless of course that extra 20% was the only profit he was making, in which case, you and I would be subsidising this guy's investment.  Am I missing something.  Don't be shy, let me know.

0 Comments:

Post a Comment

<< Home