| Author |
Topic:
When the lottery gets up to $100 million 5 times as many people play as when it's $5 million [Locked] |
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 |
Sometimes I wonder if you don't argue from certain positions to expose how ridiculous they really are, Paul.
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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 |
the_great_intex  Title: This is what cool looks like
Posts: 1,669
Registered: 2002-6-27 08:18:27
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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 |
People who ask for handouts don't develop as someone who has to struggle. Struggle is nature's way of strengthening itself
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Only those who dare to fail greatly, can ever achieve greatly
In the middle of difficulty lies opportunity
The only thing in life achieved without effort is failure
Time Circuits... On. Flux Capacitor.... fluxxing.
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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:
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.
I thought it was pretty obvious. The capital gains tax rate will never make you better off sitting on your money than investing if you would have been better off investing at a 0% tax rate.
It can have some effect on how you invest, but it doesn't mean people won't invest at all.
High capital gains will drive up the cost of capital for risky businesses, which you can view as a net economic cost. It will drive down returns, and therefore slow the growth of capital over time.
It won't impact the overall level of investment as a % of assets.
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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:
I thought it was pretty obvious. The capital gains tax rate will never make you better off sitting on your money than investing if you would have been better off investing at a 0% tax rate.
It can have some effect on how you invest, but it doesn't mean people won't invest at all.
Tons of people and companies are sitting on large cash reserves right now. Why aren't they investing? By your logic, no one should ever sit on their money regardless of what the tax rates are. And yet they are sitting.
Explain.
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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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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 |
paulg_68 posted:
Tons of people and companies are sitting on large cash reserves right now. Why aren't they investing? By your logic, no one should ever sit on their money regardless of what the tax rates are. And yet they are sitting.
Explain.
Supply and demand. There isn't enough demand in the economy to be worth investing which increases the supply. We need some demand-side economics. 
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E Pluribus Unum
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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 |
There might be more demand if the wealth wasn't so concentrated and being held up...
and this despite our tax rates being the lowest they've been, in the last several decades. With no hints of going much higher (certainly not historic levels), if at all higher, so that's not causing anyone uncertainty and thus hesitance. At least imo.
-----signature-----
"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 |
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:
our tax rates being the lowest they've been, historically.
You should study more history.
-----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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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 |
Scarne posted:
There isn't enough demand in the economy to be worth investing
Thank you for acknowledging that an investment has to be worthwhile.
-----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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Azure-TheBlueOne Title: Made in Alaska
Posts: 319
Registered: 2003-2-24 19:25:37
|
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:
Azure-TheBlueOne posted:
our tax rates being the lowest they've been, historically.
You should study more history.
Well, educate me. I tried to help you by pointing out our recent historic tax rates, but you seemed to be not interested. Do you have a specific time period in mind here, because we should certainly look at it in context. Don't you agree?
-----signature-----
"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
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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 |
You said they were the lowest historically. You already defined the time range.
History = everything that happened before now
-----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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