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« Wednesday Caption Contest: Part 115. | WILLisms.com | Sunday Heidi Weimaraner Update: 19 Months Old. »

Trivia Tidbit Of The Day: Part 451 -- High Capital Gains Taxes Harm The Economy.

Investment Capital Likes To Be Treated Well-

From Americans for Prosperity:

...when the tax rate was reduced in 1981, 1997 and 2003, capital gains tax revenue increased 49 percent, 49 percent and 88 percent, respectively, over the next three years. In contrast, when the tax rate was increased from 20 percent to 28 percent in 1986, the tax's revenue dropped 44 percent over the next three years.

This is not rocket science.

Investor's Business Daily has a great editorial on this subject:

Pitting classes against one another may be an effective way of getting votes in Democratic primaries, where it seems the lowest common denominator get the highest priority. But as trendy as this process has become, it is one of the most economically destructive developments ever in our nation's political discourse.

Solving problems — not appealing to crass emotionalism — is the responsibility of our leaders. In the case of ratcheting up the capital gains rate, the results will likely extend to wrecking the economy.

Plus the highly elucidating graph:


This is a prime example of how a lower tax rate (a large component of economic freedom) leads to stronger economic growth. Higher taxes, meanwhile, stymie economic activity and harm human progress. Higher taxes are immoral; anything that punishes and indeed prevents success is illogical and nonsensical.


Previous Trivia Tidbit: America On The Verge Of Becoming Pre-Sarkozy France.

Posted by Will Franklin · 2 August 2007 01:58 PM


John Edwards is eager to raise the capitol gaines!...

Posted by: zsa zsa at August 2, 2007 07:29 PM

The democrat party's hobby is popping firecrackers:
"This is not rocket science."

This most common democrat economic tactic is:
"Pitting classes against one another"

Unknown theory in the democrat party:
"Solving problems — not appealing to crass emotionalism"

Path to success for the democrat party:
"Higher taxes, meanwhile, stymie economic activity and harm human progress."

Why productive citizens are ignored in the democrat party:
"Higher taxes are immoral; anything that punishes and indeed prevents success is illogical and nonsensical."

Good Post.

Posted by: Eneils Bailey at August 3, 2007 07:53 PM