Oracle Corporation Message Board

It's not just taxes that foments "capital flight"... it's the piling on of regulations and, as you infer, the lack of "tort reform" as well.

Socialists always feed off of the ignorance of the populace to curry favor. Warren Buffett's secretary at the state-of-the-union address was a case in point.

Still, there are simple solutions. The whole reason why dividend taxes were reduced to 15% in the first place was because they were "double taxed". It still meant that those earnings were getting the cr@p taxed out them... just less punatively, that's all.

I don't know of a single person who wouldn't be fine with taxing dividends as ordinary income... as long as the paying corporation could deduct them. Obama stridently opposed the idea... both because he's a socialist and ideologically opposed to it... and because he knows that 95% of americans are ignorant as to the reason why it's fair and beneficial to the country to do it.

Same with capital gains. A couple of years ago, the GOP proposed indexing capital gains for inflation just as earned income is in the tax tables. Obama flatly rejected the idea. That means that if somebody buys a stock for $10,000 and it rises to $10,900 over 3 years during which the rate of inflation was 3% per year, he has no gain in "real" terms, but he pays taxes on the $900 nominal gain anyway. Thus, his tax on his "real" return is effectively 100% because he didn't make any money after accounting for inflation... but he was still taxed on it...

... in the tax tables, the rate threshholds rise each year for inflation... so Warren Buffett's secretary doesn't pay taxes on any pay increase that matches inflation.

EVERYTHING in the U.S. is biased aginst productive investment and employers and biased toward consumption and laborers.

Take "FICA" taxes, for instance. Obama lowered the "employee" half from 6.2% to 4.2% so that workers would have more take-home pay to take down to walmart to buy chinese stuff... but he left the "employers" half at a 6.2% rate and thus doesn't incentivize them to hire more employees.

60% of Americans surveyed don't even KNOW that the employer normally pays for half of their future social security, and vote accordingly... let alone the fact that CURRENTLY, employers are actuallly paying for 60% of their employee's future social security.

Similarly, almost 70% of Americans surveyed think that when they're laid off, that the GOVERNMENT pays for their first 26 weeks of un-employment benefits... whereas in reality, the employer is subsequently taxed via his SUI tax for those benefits. The reality is that unemployment insurance is effectively a 26 week severance package paid for by the employer... who compares that with the cost of employing labor in other countries and hires either here or there depending on such incentives.

Bottom line: Mr. Obama is the most anti-capitalism/pro-socialism president in american history and 90% of the arguments he ran on depend on americans not understanding the facts and principles that I'm posting about today.

Spok

They make MONEY from everything they order and if they'd turn in the inept uncaring drs everything would be much better.