Gov't trying to zero sum the bills for Kat, etc...

[FromTexas]

Republicans grapple with spending cuts
By Peter Cohn, CongressDaily

Budget pressures continue to bedevil Republicans, as both chambers mull spending cuts while the White House readies an emergency request for $7 billion to gird against a possible avian influenza outbreak.
That package, to be sent to Congress Tuesday, will not be offset, unlike billions in hurricane aid for the Gulf Coast region.

http://www.govexec.com/story_page.cfm?articleid=32701&dcn=todaysnews

My thoughts:

I think the Dem's are right on one thing. Do not reinstate the lowered tax bills for capital gains. It will fall back to the previous rate (which was not that bad). It is a tax that had been higher for years and had already been coming down. I think its an unacceptable tax to maintain while dealing with a possible increase back to deficits.

I would continue to maintain the new law for the dividends tax though. I still believe that is double taxation, and we shouldn't even allow them to sink their teeth into being able to use that again for anything. Whereas, capital gains are really an increase in value of property that will be sold for profit (i.e. a type of income) -- we can bring that back down when the budget has become better aligned. I know the risk is they will just spend more, but hey, thats politics.

I do love this quote:

"This is unacceptable to me. It impacts California dramatically," said Sen. Dianne Feinstein, D-Calif.

Of course it does. You all would have more political clout if you weren't continually disparaging everyone you had to work with who was in power in the Senate, House, and White House.

Only $20 billion of that has been allocated thus far, and the new $17 billion request would be shifted from remaining balances. All told, Cochran's home state is promised roughly $12 billion. But Republican Mississippi Gov. Haley Barbour is pushing for $19 billion, plus an additional $8.8 billion over the next two years for flood insurance, health care, water and sewer infrastructure and other costs.

Shut your piehole! I don't care if you are Republican. Your state is already getting massive insurance payouts to its people above and beyond that $12 billion. Suck it up and stop trying to make the fed pay all your bills. You chaps in Lousiana better listen up to that, too, since you will be caterwauling next for more and more. Be thankful for what you receive. Didn't your momma's teach you anything?

 

[Larry Gude]

Yes...

Didn't your momma's teach you anything?

...yes she did.

She said "Boys, just remember, when dealing with Washington, if you want the moon, start out by asking for the stars. And one other thing; mind your manners, no pushing or shoving unless, of course, the cookie jar is open. In that case, borrow some hands because that bad boy won't be open forever."

 

[2ndAmendment]

...yes she did.

She said "Boys, just remember, when dealing with Washington, if you want the moom, start out by asking for the stars. And one other thing; mind your manners, no pushing or shoving unless, of course, the cookie jar is open. In that case, borrow some hands because that bad boy won't be open forever."

What's a "moom"?

 

[FromTexas]

What's a "moom"?

What a baby cow calls its mooother. :groan:

Shoot me now. utsonblindfoldandlightscigarette:

 

[2ndAmendment]

What a baby cow calls its mooother. :groan:

Shoot me now. utsonblindfoldandlightscigarette:

Good morning Larry and FT. Larry spells like I do; badly.

 

[Bruzilla]

I would disagree with cutting reductions to capital gains taxes. Every percentage point increase in capital gains taxes pushes more investment money away from investments in business and towards tax shelters. The Dems just don't realize that the rich are going to get richer whether they invest their money into businesses for a high rate of return, or into tax-free or tax-limited shelters for a smaller rate of return. What they aren't going to do is keep their money in high-return/high-tax investments as they'll be losing money (depending on how high the tax rate is and how good the investment is.) And if companies and individuals aren't investing in business creation and growth, then businesses aren't buying new equipment and supplies or hiring more people, and also means that fewer tax dollars are getting paid into the system. The big spikes in tax revenues received by the goverment this year has been as a result of quarterly payments of capital gains taxes resulting from capital gain revenues. If those capital gains revenues go down, so do the tax payments and so does the federal tills.

 

[FromTexas]

People aren't going to bolt from their investments because capital gains returned to what had previously been a low tax for it (20%). Off shores don't work quite the way you think. Besides, the people who are that rich to worry about offshore accounts have better ways to lower their taxes. They are going to still invest here because they like owning and not because they are worried about slightly less tax.

20% does not seem like a lot of tax to people whose regular income gets taxed at 35+%. These are people who used to pay 40% or more. Corporations are the main drivers of investments, anyway, and this capital gains tax does not apply the same to them. In fact, you could even argue the higher tax would encourage people to leave their investments in. As the market has been climbing, they don't want to yank their investments and pay tax, so they will keep the stock in and increase companies shareholder equity... which increases a companies ability to borrow, sell new stock, and fund investments (increasing liquidity).

 

[FromTexas]

1997 is when it went down to 20%. Here is the historical tax tables.

We are already under lower taxes than have happened for quite awhile, which encourages investment already. Besides, if you want to look at it from a different perspective, in late 1997 is when the reduced to 20% capital gains tax hit. Shortly after is when the market really started to crumble. Was it encouraging people to stay the course or to sell out and take profits? There were other factors, of course. However, it shows the argument could be debated from either viewpoint.

 

[ylexot]

I'm ok with a capital gains tax if I can get a refund for capital losses. Otherwise you are taxing people for taking risks and winning, but if you take a risk and lose...tough ####. Kinda makes you not want to take a risk...

 

[FromTexas]

I'm ok with a capital gains tax if I can get a refund for capital losses. Otherwise you are taxing people for taking risks and winning, but if you take a risk and lose...tough ####. Kinda makes you not want to take a risk...

You can write off long term capital losses, and any amount over the limit for the write off each year can be carried over to the next. Also, your losses reduce your gains in that year. So, you would need an overall loss for a year to have a write off. If you are doing that many years in a row, you may rethink worrying about tax implications and worry more about why you keep throwing away money on bad investments.

 

[Larry Gude]

I don't spell badly...

Good morning Larry and FT. Larry spells like I do; badly.

..at all. I spelled moom as perfect as you please.

Just because it's not, YET, a word...

 

[2ndAmendment]

..at all. I spelled moom as perfect as you please.

Just because it's not, YET, a word...

Why yes. Yes, you did.

 

[FromTexas]

..at all. I spelled moom as perfect as you please.

Just because it's not, YET, a word...