[FoRK] Obama: communitarian, redistributionist, confused? (from NYT)

Stephen D. Williams sdw at lig.net
Tue Aug 26 10:30:53 PDT 2008

J. Andrew Rogers wrote:
> On Aug 26, 2008, at 6:30 AM, geege schuman wrote:
>> Sorry - I'm a trickle up kinda person, not a trickle down.  JAR's 
>> lamenting
>> the lack of capital NOW, under the current Bush tax cuts.  Something 
>> doesn't
>> jibe.
> I am not lamenting a lack of capital now, so I do not know how you 
> could read it that way. Depending on the type of capital, there is 
> quite a bit right now. Venture capital is pretty flush in spite of 
> Sarbanes-Oxley poisoning that market a bit, but government policy has 
> been slowing that market.  There are probably a couple million jobs in 
> the US economy that are only profitable at the current capital gains 
> rates, so those would go away; the lower capital gains rates have 
> undoubtedly helped dampen the economic impact of Bush's stupid policies.
> Considering that somewhere around 5-10 million jobs in the US economy 
> are essentially created by private capital investments, what do you 
> think will happen if that investment pool shrinks significantly?  
> Those jobs are not sustained by magic but by private capital willing 
> to take a risk.  Not only that, it will only take a couple years for 
> that to manifest.  Do you really want an All Democrat, All The Time 
> government when that crap hits the fan with no one to blame but the 
> Democrats?  The economy is tenuous enough as it is, no need to 
> aggravate the situation by weakening the capital markets.
Raising the capital gains max rate to 20% from what, 15% it is now[1], 
while eliminating it altogether for start-up businesses is going to 
shrink the investment pool significantly??  That actually sounds like a 
great improvement to me.  More reverse economy of scale.  As someone 
interested in startups, why wouldn't I buy that rather than the status 
quo?  You guys are hand waving about how the Obama proposal is so 
horrible, however I don't see you giving enough specifics that back that 
up.  Upon first glance, I see exactly the opposite effect is likely: 
There would be a flood of investment into startups to get 0% capital 
gains taxation, which would still be 15% under McCain.


[1] It appears that it is 0% or 15% now and with the expiration of the 
existing temporary tax cut legislation that it will revert to 8 or 10% 
and 18 or 20% in 2010 with no action.

> In politics, it is apparently okay to shaft hundreds of little guys in 
> order to shaft a big guy who never really deserved it in the first 
> place, but no one ever seems to take responsibility for shafting all 
> those little guys, only the big guy.
> J. Andrew Rogers

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