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12.08.2005

Good

"The House of Representatives today passed the last and biggest piece of a total of $95 billion in tax cuts, a move that reflects both the ambition of House Republicans leaders and their willingness to let the budget deficit widen in years to come."
Spending causes deficits. Those tax cuts resulted in "tax receipts [that] rose by more than in any previous year in U.S. history, even adjusting for inflation."

Especially for an area like capital gains, where tax avoidance is very likely and probably easier than, say, income or property taxes, taxes should remain low. If anything, continuing the trend to bring ever more people into the investor class is good.

Government spending today is BAD. Letting this tax cut roll back would NOT increase revenue.

Also, check this out. Tax rates on the wealthiest people have decreased and their share of taxes paid has increased.
1980: rate=70.0%, share by wealthiest 1%=19.3%
1986: rate=25.7%, share by wealthiest 1%=27%
Today, share by wealthiest 1%=34.3%

I can guarantee an op-ed tomorrow in the NYT about how this house vote means the rich wont pay their fair share. That's pretty funny. Yes, yes, the wealthiest 1% control 39% of wealth, which is greater than 34.3%, but increasing marginal rates would _hurt_ that!

Further, the top 20% only control 42% of wealth, while paying 80% of taxes.

UPDATE: It's like they are following a template or something.

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