| Author |
Topic:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million [Locked] |
paulg_68  Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
Yukishiro1 posted:
I've never, ever met a rich person who wouldn't have bothered to invest their money if they were taxed 40% on it instead of 15%.
Then you've never met a rich person.
The default use of assets is to not invest. Zero risk, zero return. People make investments when they believe those investments are better than the alternatives, and the alternatives always include the default. Raising taxes does not decrease the risk, but it does decrease the return. That means many investments which would have been superior to the default at a low tax rate are not superior to the default at a high tax rate.
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"Everyone has a chance to become rich." - Groucho48
"Most of the human wealth on earth exists between the ears of live human beings." - theredkay1
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paulg_68 Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
Yukishiro1 posted:
Let me know how basing your economic policy around people who buy lottery tickets works out for you.
I'm not.
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If you wish to make an apple pie from scratch...
http://www.youtube.com/watch?v=zSgiXGELjbc
"Everyone has a chance to become rich." - Groucho48
"Most of the human wealth on earth exists between the ears of live human beings." - theredkay1
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Azure-TheBlueOne  Title: Made in Alaska
Posts: 319
Registered: 2003-2-24 19:25:37
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
By your argument, investments in our economy should be higher than they've ever been, because our tax rates are historically low.
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"When the government scares people into thinking it must take their liberties away,
and the people let the Government do it.
They are sheep."
- Judge Andrew Napolitano
http://www.leap.cc/cms/index.php |
cherrim  Posts: 68
Registered: 2003-4-6 21:57:39
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
paulg_68 posted:
The default use of assets is to not invest. Zero risk, zero return.
I can see that a lottery player might think this way. Most people with capital do not.
Hint: the risk of not investing is nonzero.
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One special advantage of the skeptical attitude of mind is that a man is never vexed to find that after all he has been in the wrong.
- William Osler
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paulg_68 Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
Azure-TheBlueOne posted:
By your argument, investments in our economy should be higher than they've ever been, because our tax rates are historically low.
Risks are high right now. Expected returns are low.
Tax rates are just one part of the risk/return calculation.
-----signature-----
If you wish to make an apple pie from scratch...
http://www.youtube.com/watch?v=zSgiXGELjbc
"Everyone has a chance to become rich." - Groucho48
"Most of the human wealth on earth exists between the ears of live human beings." - theredkay1
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Scarne Title: Capo di Scientifico
Posts: 1,087
Registered: 2001-7-23 15:24:34
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
Remember when discussing taxes with paulg_68, he didn't know how progressive tax brackets worked until the Outpost taught him about a year or so ago. 
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E Pluribus Unum
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paulg_68 Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
cherrim posted:
paulg_68 posted:
The default use of assets is to not invest. Zero risk, zero return.
I can see that a lottery player might think this way. Most people with capital do not.
Hint: the risk of not investing is nonzero.
It is effectively. Identify what you think is a risk associated with not investing and you will see that it also exists if you invest.
-----signature-----
If you wish to make an apple pie from scratch...
http://www.youtube.com/watch?v=zSgiXGELjbc
"Everyone has a chance to become rich." - Groucho48
"Most of the human wealth on earth exists between the ears of live human beings." - theredkay1
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Yukishiro1 Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
paulg_68 posted:
The default use of assets is to not invest. Zero risk, zero return. People make investments when they believe those investments are better than the alternatives, and the alternatives always include the default. Raising taxes does not decrease the risk, but it does decrease the return. That means many investments which would have been superior to the default at a low tax rate are not superior to the default at a high tax rate.
The capital gains rate - by definition - cannot turn a profitable investment into an unprofitable one.
Your problem is you don't have even a basic understanding of what you're talking about. Raising the capital gains rate does have an impact on investment but it isn't the impact you think it does.
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paulg_68 Posts: 2,469
Registered: 2009-7-27 18:45:54
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
Yukishiro1 posted:
paulg_68 posted:
The default use of assets is to not invest. Zero risk, zero return. People make investments when they believe those investments are better than the alternatives, and the alternatives always include the default. Raising taxes does not decrease the risk, but it does decrease the return. That means many investments which would have been superior to the default at a low tax rate are not superior to the default at a high tax rate.
The capital gains rate - by definition - cannot turn a profitable investment into an unprofitable one.
So what?
Complete your thought.
-----signature-----
If you wish to make an apple pie from scratch...
http://www.youtube.com/watch?v=zSgiXGELjbc
"Everyone has a chance to become rich." - Groucho48
"Most of the human wealth on earth exists between the ears of live human beings." - theredkay1
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Ptilk Title: Creepy old pirate
Posts: 2,359
Registered: 2002-2-13 14:52:58
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Date Posted:
1/1/00 12:00am
Subject:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million |
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The easiest, quickest, and most assured way of making money isn't creating jobs....it's destroying them. Look at Bain Capital (Romney's old firm).
You buy up businesses that are profitable, but not profitable enough for their shareholders. Take over, rape the company, fire it's workers (who were making profits for the owners), sell off the most attractive parts of the company after "cutting costs" by getting rid of all the people who knew what they were doing and replacing them with much lower paid, much less trained workers, then when the company is losing money like crazy and there is nothing left of value in it....you declare bankruptcy, close the business, and take a huge tax deduction.
Net result, thousands of workers are laid off, a profitable company is gone, and the people who did it made hundreds of millions of dollars then got a tax break.
Welcome to the holy grail of American Business in the 21st century.
PS. The market share of the now closed business is grabbed by some company in Sri Lanka that pays it's employees 1/20th of what their American counterparts made, is owned by the same guys who destroyed the American business, and pays no corporate, or payroll taxes to the US government. Which is one of the reasons our country is in this god damn mess.
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