Another excellent explanation in real world terms of a topic that isn’t exactly common understanding:
History clearly shows us that every time the capital gains tax is reduced, good things happen economically. The opposite is also true.
Recall that the capital gains tax is included in this oft-thundered pledge:
Unfortunately for you and me, he seems to have forgotten that rather unambiguous pledge when he also committed to let George W. Bush’s 2001 and 2003 tax cuts expire at the end of this year:
On the other hand, tax increases are still coming. Taxes on incomes, capital gains, dividends, and estates all go up on January 1, 2011. The health care bill raises all sorts of taxes and fees, including the Medicare tax for high earners.
Much as some might desire it, you just can’t have it both ways. Either you raise taxes or you don’t; either you keep the promises that inspired people to vote for you, or you don’t.
When it comes to liberal Democrats, the only tax promise we can count on is that they’ll raise taxes whenever they can, on whatever they can, as much as they can. That’s why those of us with clear thinking don’t even believe their campaign pledges to do anything otherwise in the first place. Fool me once, shame on you; fool me twice, shame on me. Conservatives are people who have been fooled less than twice.
There’s my two cents.