Financial Consulting
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Consultants are now advising wealthy clients to prepare for higher capital gains taxes because an Obama presidency and a Democratic congress are imminent.
This is very bad consulting. The tax increase is not caused by Obama or the congress, it is caused by a huge cost-benefit ratio.
The cost has gotten so high, the benefit is to a point of diminishing returns--where it becomes the duty of "The People" to secure their welfare as per The Declaration of Independence and the Constitution of the United States.
If you think that either the consultants or their clients realize the fallacy of the argument, that would be wrong. In most cases, despite the glaring detriment to the general welfare, they believe a favorable capital gains rate promotes the general welfare.
Of course, it does not. The benefit is almost entirely exclusive to the higher income class.
A low capital gains tax encourages speculative demand, and discourages supply-side economic investment which, in turn, bids up the price of the limited supply which results in a capital gain. It is a circular racketeering scheme that inflates prices, deflates the economy, causes a big demand for government spending, and a huge budget deficit. It is part and parcel of a regresive tax burden scheme in which the benefit is largely trickled up, and the cost largely trickled down, accomplished by indirect means, difficult to either understand or detect not only by the average income earner, but the wealthy as well.
There is a big difference in a tax scheme that encourages wealth by giving (investing in supply and economic growth) and by taking (investing in a slow-growth, demand-exceeds-supply inflationary deprivation).
A more progressive tax code will subsidize wealth through giving and tax wealth by taking, encouraging a surplus of economic growth, and a shortage of deflationary deprivation and general instability.
A more Jeffersonian form of government is clearly in order, not caused by, but ushered in with the pragmatic political skill of Senator Barack Obama and a broad coalition of support, to pursue The Declaration of the Natural Right to share equally in both the costs AND the benefits to secure the domestic tranquility.
Very best wishes.
This is very bad consulting. The tax increase is not caused by Obama or the congress, it is caused by a huge cost-benefit ratio.
The cost has gotten so high, the benefit is to a point of diminishing returns--where it becomes the duty of "The People" to secure their welfare as per The Declaration of Independence and the Constitution of the United States.
If you think that either the consultants or their clients realize the fallacy of the argument, that would be wrong. In most cases, despite the glaring detriment to the general welfare, they believe a favorable capital gains rate promotes the general welfare.
Of course, it does not. The benefit is almost entirely exclusive to the higher income class.
A low capital gains tax encourages speculative demand, and discourages supply-side economic investment which, in turn, bids up the price of the limited supply which results in a capital gain. It is a circular racketeering scheme that inflates prices, deflates the economy, causes a big demand for government spending, and a huge budget deficit. It is part and parcel of a regresive tax burden scheme in which the benefit is largely trickled up, and the cost largely trickled down, accomplished by indirect means, difficult to either understand or detect not only by the average income earner, but the wealthy as well.
There is a big difference in a tax scheme that encourages wealth by giving (investing in supply and economic growth) and by taking (investing in a slow-growth, demand-exceeds-supply inflationary deprivation).
A more progressive tax code will subsidize wealth through giving and tax wealth by taking, encouraging a surplus of economic growth, and a shortage of deflationary deprivation and general instability.
A more Jeffersonian form of government is clearly in order, not caused by, but ushered in with the pragmatic political skill of Senator Barack Obama and a broad coalition of support, to pursue The Declaration of the Natural Right to share equally in both the costs AND the benefits to secure the domestic tranquility.
Very best wishes.
