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Subject:  Re: Is your 401(k) Inadequate For Retirement Date:  8/2/2008  9:40 PM
Author:  ChurchyLaFemme Number:  13774 of 20640

If you want money invested shrewdly in way that will build up business investment, rebates to the general population aren't going to accomplish much. Providing low tax rates for those who already make such decisions, by taxing capital gains lightly (for example) may be a highly effective way of accomplishing that purpose.

Seattle Pioneer

Capital gains are already lightly taxed compared to earned income, so what's your point? For that matter, unearned income is taxed more lightly than earned income. That's one of the reasons you retired.

I was against the rebate idea myself as it appeared to me to be a "quick-fix" feel-good type of thing that essentially accomplished nothing other than to increase the deficit and pass on the bill to my kids and grandkids.

OTOH, we can't get give the "great unwashed" a break because they'll just spend it, right? They're just so unworthy, the ingrates. God, and right-wingers have the nerve to call Democrats "elitist".

Here's an idea. Double the standard deduction and the personal exemption. That way a family of 4 can be making $51,400 before they get hit with income tax. They're already paying the payroll tax. Then we change the rates back to what they were in 2000 except for keeping the 10% bracket. High income individuals stil get a tax break because they don't have to start paying until $51,400 (more with itemized deductions). Shoot, a family of 4 wouldn't get out of the 15% bracket until gross income hit $116,500.

Maybe some of those in the lower income strata would at least then have a fighting chance of putting money aside for old age. But we can't have that, can we?

Investment means squat if people can't buy what's manufactured. In fact, no one will invest if they can't make a return by selling something or providing a service people CAN and WILL pay for. I invested in AAPL because I thought they would do well. They have. By selling stuff to people who want it. You think they would have developed the iPod and iPhone if they thought there was no market for those items?

But this concept seems to elude a lot of people, who seem to want to see things only from a single perspective.

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