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...when I saw the lead editorial in my left-wing rag of a newspaper this morning:

Oregon's capital gains tax is too high

In many cases, capital gains go right back to work, which is to say they're poured into businesses, property or anything else investors consider potentially lucrative – emphasis on potentially. An investment that promises to be lucrative can turn out to be disastrous because, you know, investing involves risk. That's one reason why capital gains are often taxed at a lower rate than regular income.

Why should those who don't have money to invest value such tax-code incentives? Because other people's investments allow companies to grow, allowing those businesses to hire more people, who, in turn, buy stuff and pay taxes. The more heavily you tax capital gains, the more expensive private capital becomes for the small businesses so many Oregonians support.

In tax year 2007, for example, 297 Oregonians with capital gains income moved to Clark County, WA [Vancouver]. Their average capital gain that year was $166,455... Between 1992 and 2006, Oregon lost $1.3 billion in net income just in the first year after people made the move. That number doesn't include income earned in subsequent years.

I'm too stunned to add any comments.

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