A Minimum Tax for the Wealthy

[nhboy (Premo)]

Link to original article.

"SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.

Between 1951 and 1954, when the capital gains rate was 25 percent and marginal rates on dividends reached 91 percent in extreme cases, I sold securities and did pretty well. In the years from 1956 to 1969, the top marginal rate fell modestly, but was still a lofty 70 percent — and the tax rate on capital gains inched up to 27.5 percent. I was managing funds for investors then. Never did anyone mention taxes as a reason to forgo an investment opportunity that I offered.

Under those burdensome rates, moreover, both employment and the gross domestic product (a measure of the nation’s economic output) increased at a rapid clip. The middle class and the rich alike gained ground.

So let’s forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased. The ultrarich, including me, will forever pursue investment opportunities.

And, wow, do we have plenty to invest. The Forbes 400, the wealthiest individuals in America, hit a new group record for wealth this year: $1.7 trillion. That’s more than five times the $300 billion total in 1992. In recent years, my gang has been leaving the middle class in the dust.

A huge tail wind from tax cuts has pushed us along. In 1992, the tax paid by the 400 highest incomes in the United States (a different universe from the Forbes list) averaged 26.4 percent of adjusted gross income. In 2009, the most recent year reported, the rate was 19.9 percent. It’s nice to have friends in high places. "

[Aerogal]

ok. one more time........we (as a country) do not tax wealth.

Let's say that you (NB) have $4 million in the value of your home, business, stock, real estate , cd & other invesments.
But you ONLY draw $150k a year in total from all your 'wealth' to live on.
The amount you are taxed is based ONLY on the $150k that you pulled as income.

pretty good deal, huh?

Nancy Pelosi is worth $65mil. Harry Reid $$$milllions, BO is now worth 12mil (hmmmm...another topic), ad nauseum..... Do you think for one moment they're going to allow themselves to be taxed on 65million? a year?

[ylexot]

On a sure deal, yeah, you probably wouldn't consider the taxes on the profits. However, with higher taxes, you would have less money to invest. Also, on a not-so-sure deal, yeah, the taxes might influence your decision.

Think of a situation that we all probably face daily...do I turn onto the road? If there's nobody coming, it's a no-brainer and you go. If there is traffic, you have to judge the speed and distance of oncoming cars, take into account the traction of your tires on the current road surface, and the acceleration abilities of your car. Judge correctly and you're good. Judge incorrectly and you cause an accident, get injured, or killed. And that's much simpler than deciding if you want to invest or not.

[aps45819]

Originally Posted by nhboy

"SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather....."

...invest overseas or just buy gold and silver bullion

[Gilligan (Premo)]

Originally Posted by Aerogal

ok. one more time........we (as a country) do not tax wealth.

Let's say that you (NB) have $4 million in the value of your home, business, stock, real estate , cd & other invesments.
But you ONLY draw $150k a year in total from all your 'wealth' to live on.
The amount you are taxed is based ONLY on the $150k that you pulled as income.

pretty good deal, huh?

Nancy Pelosi is worth $65mil. Harry Reid $$$milllions, BO is now worth 12mil (hmmmm...another topic), ad nauseum..... Do you think for one moment they're going to allow themselves to be taxed on 65million? a year?

Do you really think the boy understood one word of that coherent explanation?? Thanks for putting it out there, though

[tom88]

Originally Posted by Gilligan

Do you really think the boy understood one word of that coherent explanation?? Thanks for putting it out there, though

Damn! I saw that you were the last poster so I thought this was going to be a good discussion, then I see it was started by the boy. I'm out!

[GURPS (Premo)]

so lets adopt French 75% taxes in wealth over 250 k for Politicians 1st.

the give away all their goods, then Cameron, Lucas, and Other Hollywired folks, followed by Bill Gates, Paul Allen and other Rich liberal CEO's Socialist Financiers - Buffet and Soros

when all this hypocritical have given away their Millions, and Billions - buy stroking checks to uncle SAM for the full amount of their value of their wealth - by turning everything into cash over 250,000


when Progressives have given away everything over $ 250,000

then they can point fingers @ Conservatives until then STFU

[FreedomFan]

Yawn.

When are you people going to learn it's not liberals versus conservatives, but the government versus The People.

Sheesh. So much time wasted farting around with this drivel.

[aps45819]

Originally Posted by FreedomFan

Yawn.

When are you people going to learn it's not liberals versus conservatives, but the government versus The People.

Sheesh. So much time wasted farting around with this drivel.

... because progressives support growing the government

[Gilligan (Premo)]

Originally Posted by FreedomFan

Yawn.

When are you people going to learn it's not liberals versus conservatives, but the government versus The People.

Sheesh. So much time wasted farting around with this drivel.

The only reason I even hang around here is because I'm expecting you to make a prescient post...one with substance..thought..evidence of critical thinking..

Please do not disappoint...