Reply to Romney Paid 13.9% Tax Rate on $21.6 Million in Income.

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[quote=Anonymous][quote=Anonymous]Anonymous wrote:
The funny thing about this is that Democrats wants to now raise the capital gains rate but they've shown that the government is incapable of allocating those resources in an efficient manner. ROmney was, but if you give all that money to the people living in squalor in Potomac Gardens I bet they'll end up in the same situation. You can try and try but you can't tax your way to some sense of equality. But hey you can try, and you can be envious of the wealthy and the successful. Stupid government workers.

Wow! So you are in favor of the government allocating resources. You are a socialist.

??
In the case of capital gains tax. The government through the use of tax rates(earned income by wages is taxed higher then cap gains income) causes the markets to shift resources to capital gains.(government influencing the allocation of resources) The people receiving the discounted tax rate on capital gains are receiving a distributions of money based on government policy. Therefore, you are in favor of "Stupid government workers""allocating those resources" through tax policy. You are taking money from one group and giving it to another. You, by today's standards, are a socialist.[/quote]

The argument against lower capital gains has NOTHING to do with whether the government can allocate resources better or worse.   If the tax rates were made uniform, the government would have NO greater role in allocating resources.  In fact, one can lower the income tax rate and increase the capital gains rate.  That is what ocurred during the Reagan Administration. who no doubt would be considered a socialist today.

One can legitimately debate whether the government (versus the private sector) is good at making investment decisions.  But let's be real.  There are multiple examples of the private sector making huge investment decisions that failed.  VCs regularly lose money on their investments, but obviously the good ones make more than they lose.  But even the best VCs lose money.  Lets take the Internet Bubble or the real estate bubble, where the private sector drove up prices and then discovered that they paid too much.  What caused, at least in part, the Great Recession?  The Wall Street idiots (who claimed to be among our best and brightest) created financial instruments that were so complicated that they did NOT fully understand them.  So, lets get real.  The private sector has a long history of making dumb investment decisions.  Someone no doubt will argue that, when the private sector makes a bad investment decision, only the applicable investors suffer.  That is flatly wrong.  Private sector bubbles create problems that extend well beyond the immediate investors, and that becomes the debatable rationale for bailing out the investors, which is exactly what Bush 2 and Congress did with TARP.  That money was used to bail out wealthy investors.  Look what is happening in Europe.  The debate is over how to bail out NOT Greece, but the investors in Greek bonds.  In my view, Greece should simply say we default!  That is what tea partiers would have had the US do back in 2008.     
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