We Have a Word for That...Two Words Even
I have previously shown how both Canada and Japan have attempted to kill their stock markets, and thus the wealth and retirement savings of their citizens. China is now consciously trying to damp down its stock market. Well, how do you do it? No hemming and hawing, the Chinese know that it is obvious - higher taxes on capital. Likewise the way to see economic prosperity blossom is to lower taxes. The experience of certain eastern European countries and, above all, Ireland makes this patently obvious (Ireland was the poster child of economic backwardness for centuries until, guess what, taxes went down [n.b. virtuous consequence of economic prosperity is that Irish sports teams are kicking the tar out of those who have long dominated them]). See also this. So why on Earth would we want to do such a clearly destructive thing such as let the 2003 dividend and capital gains tax cuts expire? Billions of dollars of everyday Americans' wealth will be destroyed. It is no less than shooting ourselves in the foot, totally beyond question that it will hurt us. What do you call doing something that you know will hurt? Stupid. Or masochistic.
posted by Donny Baseball at 10:38 AM
2 Comments:
It is no less than shooting ourselves in the foot, totally beyond question that it will hurt us.
It won't hurt everyone; in fact some would actually benefit. If you are already super rich, then entrepreneurs and startups can be major threats to your wealth and power, i.e. the creative destruction process of capitalism is a threat to the super rich. One way to protect themselves is to push for stagnant policies. This means higher taxes, more regulation, etc. They would benefit from stagnation and socialism, i.e., once they are ahead, they turn around and start shooting everyone else's foot so that no one could get ahead of them. And they disguise this in the name of equality, helping the poor, etc. in order to get the votes; using our democratic system against capitalism. Very few could tell the difference. It's pure (evil) genius.
I don't think this is rent-seeking or big business hamstringing small business, this is purely a big government, Euro-style democratic socialism gambit. It is a tax hike on the investor class to fund social spending.
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