Where is Bush going to get the Money to Fund his new programs

[jshore]

@blowero

I understand the theory, but is there any empirical evidence that “trickle down” theory is valid?

But, it is such a wonderful theory that justifies what many of the people who are behind it want to do anyway (to cut taxes on the rich)! Who needs evidence?

I would expect that most people, when asked, would downplay the fact that they had anything “handed to them”, and would tend to try to portray themselves as self-made.

[MontyPython]
You had a box?!? We used to dream of a box! … We would get up one hour before we went to bed, drink a vial of freezing cold poison, …
[/MontyPython]

[Monocracy]

@sleestak

The arguement against high capital gains taxes is this: If Mr Big Bucks now has 1.5 million in BEC and wants to sell that stock to buy stock in another company, lets call it Small New Company(SNC) the capital gains tax is an instant hit to his investments making Mr Big Bucks less likely to sell BEC and buy SNC. SNC is a small new company, hence the name, and needs investment to grow. Mr Big Bucks wants to buy some SNC. But the capial gains tax is a negative influence on Mr Big Bucks and makes it less likely for him to move his money. Why? Because he loses alot when he sells BNC. So Mr. Big Bucks is more likely to keep BEC than to sell it and SNC doesn’t get the capital it needs to grow. So Mr Big Bucks keeps his money in BEC and keeps the dividends, which are taxed, and his principle(the 1.5 mil) stays in tact and SNC does not get the investment it needs to grow.

Now, Joe Schmoe, who was on the short list to be hired by SNC, is no longer iup for the job because SNC doesn’t have enough money to hire new people.

But doesn’t that work both ways? If Mr. Big Bucks sells BEC, then BEC loses $1.5 in capital, and Joe Schmoe would really need the job at SNC because he just got laid off from BEC. And as sixor9 pointed out, this isn’t the way investing works.

Additionally, if Mr. Big Bucks were a savvy investor, the taxes would not influence his decision. He is going to have to pay those taxes eventually, unless he plans on holding those investments for eternity, or he intends to wait until BEC drops back to $1 per share, so he can sell it without making any capital gains, and therefore without paying CG taxes.

In my opinion, capital gains income should be taxed the same as any other income.

To answer the OP, deficit spending is the way. It is going to drive America to bankruptcy and economic ruin, but a majority of the electorate is too stupid and greedy to vote out politicians who thrive on fiscal irresponsibility.

[Jinx]

The Republican form of “supply side economics” means all social programs hold the “supply” on the side. In other words, by killing more and more social programs, there will be reserves of “new found money” to tap into! If this doesn’t work, we can continue to borrow until we’ve mortgaged off every last inch of the land we love… - Jinx