Trump Urges Slashing of Capital Gains Tax! 🎉
Lowering the capital gains tax is a game-changer for progress and retirement incomes. It hampers innovation, our standard of living, and even retirement funds by dampening the rewards of successful risk-taking. Equity prices would soar with a decreased rate or, better yet, its elimination. President Trump's tax-writing team should consider incorporating a substantial cut in this levy in their legislative endeavors. Not only will it bolster the economy, but it will also generate immediate revenue for the government, a point that fiscal conservatives would appreciate.
Unleashing economic growth is crucial to overcoming our financial predicament, and a lower capital gains tax would significantly contribute to this goal. Currently, the tax stands at an unnecessarily high 20% plus a 3.8% Medicare surtax, amounting to nearly 24%. The tax penalty is even more burdensome with state-level taxes, making investments less appealing. Lowering the federal rate could spark a movement towards similar reductions on the state level.
The speed and impact of a reduced capital gains tax are evident from history. Both under Democrat Bill Clinton in 1997 and Republican George W. Bush in 2003, reducing this tax led to an increase in tax revenue the following year. Lowering the current 23.8% rate down to 15% would generate a delightful outcome. With enormous stock market gains, investors would cherish an opportunity to reap profits and reinvest the surplus into other promising prospects, maintaining capital mobility instead of it being stagnant in existing investments.
Critics may label this as a tax break for the wealthy, but what matters is if it stimulates the economy and benefits individuals. And the answer is a resounding yes. The case for lower cap gains taxes or even eliminating it is highly compelling. It adversely influences capital formation by diminishing after-tax returns. Moreover, it brings about double taxation, as profits are already taxed at the corporate level and again when distributed. Capital is the driving force behind progress.
The tax rate failure to adjust for inflation often results in investors paying taxes on fictitious gains. The Trump administration should advocate for this essential reform.
- Steve Forbes, a prominent advocate for lower taxes, has repeatedly argued that reducing the capital gains tax is crucial for economic growth and retirement income.
- In light of investors sitting on massive stock market gains, a capital gains tax cut would allow them to pocket some profits and reinvest the rest, driving capital mobility.
- Critics may argue that a capital gains tax cut is a handout for the wealthy, but the effective tax rate is actually higher than the nominal due to lack of indexation for inflation.
- A capital gains tax cut would not only stimulate the economy but also generate immediate revenue for the government, as shown in historical data under President Clinton and Bush.
- The destructive nature of the capital gains tax hurts retirement incomes by hobbling progress and lowering the rewards of successful risk-taking, and it's an issue that necessitates factual discussion and comment.
