Monday, August 8, 2016

Presidential Candidate Pisses Off Wall Street

  • Donald Trump outlines economic proposals Monday in Detroit speech
  • Would make all childcare expenses tax-deductible for parents
  • Wants to put the Keystone XL pipeline project back on the table
  • All business tax rates would plummet to 15 per cent to encourage growth
  • Proposes moratorium on economic regulations in Washington
  • Would allow overseas assets to come back to the U.S. at reduced tax rate
  • Ends the estate tax, which seizes as much as 40 per cent of assets at death
  • Zero income tax for poorest, number of bands axed, top rate cut to 33pc

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    Republican presidential candidate Donald Trump has proposed imposing a temporary moratorium on new federal regulations, reviving the Obama-stalled Keystone oil pipeline project, slashing business tax rates and making childcare expenses fully tax-deductible, in a landmark economic speech Monday.A campaign aide said Monday that 'we don't want it to be an economic disadvantage to have children.'

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    How horrifying.  What will keep the abortion doctors busy?
    A tax rate of 15 per cent would be the norm for businesses in a Trump administration, and hedge-fund managers would no longer get the benefit of special treatment for 'carried-interest.'That tax, on investment earnings paid to fund managers, is currently taxed like capital gains – at rates far lower than ordinary income.

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    Don't pretend to understand "carried-interest" treatment, but I am sure Clinton wants to protect these billionaires.  Described here by a Brookings Center/Urban Institute web site in ways that make me think every billionaire Democrat will be furious at Trump for expecting them to not buy a new jet every year.  The argument for a lower long-term capital gains tax rate has always been that earned income tax rates are too high, which discourages investment.  This is a persuasive case, but the morality of taxing billionaires at a lower tax rate than people who work a living has always bothered me.

    1 comment:

    1. We don't tax billionaires at a lower rate.

      We tax different funds transfers at different rates.

      We do this because we want to incentivize certain types of transactions (municipal bonds for example) and not others (day trading).

      Buy and hold stock strategies make for (slightly) more stable markets. Making municipal bonds tax free keeps bond rates low for cities. etc. etc.

      That billionaires, millionaires and regular blokes like me all have the same options is perfectly fair.

      Remember, the top 1 percent pay about 44-45 percent of all the collected income tax while making only about 16 percent of all the income. THAT is unfair.