About those taxes.......

The problem with Capital gains taxes, is that its not their rates that determine economic activity, It's the anticipated change in their rates. If rates are scheduled to go up, a flurry of selloffs will follow resulting in stocks losing value and more cash (and cash equivalents) being hoarded. If rates are scheduled to go down, then investors will prefer to sit tight on their appreciated assets, and wait for the taxes to drop before they cash in. The resulting distortions are what cause people to claim that lowering taxes cause revenue windfalls. They're one shot deals that don't continue after the new rates are settled in. I personally find it difficult to justify that people who live on their investments are taxed significantly less than people who earn salaries. I'm all for simplifying the tax code but none of the proposals on the table do anything but make the stratifying of our society even worse than it already is.

Re: The vanishing Middle Class

What's actually killing the middle class is the disparity in standards of living between the USA we know and love and the rest of the developing world. Neither party is actually willing to discuss the problem in detail because neither party has a solution. The difference though is that Obama is at least willing to use phrases like 'investing in education' and such to act a:as if the problem exists and b: as if something can be done about it. Romney OTOH, simply wants to make sure that money earned offshore can be repatriated tax free.

Responding to the quote below:

Whether we like it or not, we're going to move away from manufacturing towards a service based economy There's the problem in a nutshell. Whenever we think of any activity that earns money, we have to ask ourselves, "How does this add value?" Measured in terms of fulfilling actual human needs as opposed to simply drawing attention and cash, the only activities that actually add value are farming, manufacturing and transportation. Everything else is a matter of trading cash for vapor. Thinking that the American economy can make do without actually producing anything is the number one fundamental problem with out current economy. It's also the number one topic that everyone refuses to talk about.

I'll need this for tomorrow.......

Some edumacation for the trolls:

There has been a five percentage-point Democratic advantage, on average, in Fox News polls this year. In this poll, the Democratic edge is nine points. That may or may not be on the high side, although it is similar to other recent national polls conducted by NBC News and the Wall Street Journal, which puts Democrats up 11 percentage points and the Pew Research Center, with Democrats up by 13 percent.

That my friends is Fox news taking away the number one excuse the Teaheads offer when confronted with a negative poll. OVERSAMLPLING!!!!!!! Link

Every Day Is Thursday.