Putting Saxby Chambliss, Mike Crapo, and Tom Coburn in Perspective


This is really sad and pathetic. I can only guess they have struck such a bad deal because they negotiated from a position of fear. You never get a good deal when you are negotiating because you are scared.

The Senate Budget Committee is sending around an email pointing out some of the horrors of the Gang of Six’s gangrene plan.

Consider this: Saxby Chambliss, Mike Crapo, and Tom Coburn agreed to raise capital gains taxes from 15% to 28%.

Likewise, employers would no longer get a wage credit for keeping activated military reservists on the job.


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28 Comments Leave a comment

Don't we already tax certain cap-gains at 28%?

juumanistra (Diary) Friday, July 22nd at 6:26PM EDT (link)

Granted, it’s a pathetically small subcategory of them that consists pretty much entirely of cap-gains from appreciation of art objects, antiques, and other comparable goods, but still.

Really, we shouldn’t be afraid of abolishing the preferential treatment of cap-gains under the tax code: The Left does have a point that it is distorting and does pick a particular class of winning taxpayers, while we have no great ideological dog in this fight. (As, after all, the only reason cap-gains are taxed at preferential rates is to compensate for the fact that income taxation disincentivizes investment.) Of course, we’ll never be able to get the Left to agree to the only equitable and non-destructive way to achieve their preferred policy result, as that’d mean taxing all income, regardless of source or class, at a single uniform rate. So best hunker down and bitterly oppose changing the status quo.

No, you obviously don't understand capital gains.

Tbone (Diary) Friday, July 22nd at 9:45PM EDT (link)

If they raise the rates then the appreciated assets won’t get sold and there will be no gains to tax. Here, let me help you learn with an exercise you can do at home. How many more years would you have to hold an asset that is appreciating at a rate of 5% annually to recover the 13% in extra tax?

Yep Sparky, no taxes paid in the interim.

Also, Google “1031″.

Envisioning when all that is Left is the Right.

I understand how cap-gains work, thanks.

juumanistra (Diary) Friday, July 22nd at 10:10PM EDT (link)

And yes, I also know there cannot be a gain until it is realized via sale of the asset. Might want to tone down the condescension a wee-bit, lest someone take it personally.

I’m not disagreeing with you: As said in my second paragraph, raising the rate at which cap-gains are generally taxed without a wider reform of the tax code is pointless and self-destructive, because the only reason cap-gains are taxed at rates different from ordinary income is because of the disincentivizing effects to work and investment that result from progressive income tax rates. That doesn’t mean that in an ideal system that they should be given preferential rates, though: Income should be treated as income, no matter the source, and taxed at a uniform rate that is sufficiently low as to not penalize incomes derived heavily from investments in capital.

We shouldn’t be wedded to preferential rates for cap-gains: Merely that, with the current form of the tax code, they are necessary to mitigate against the adverse effects of extant marginal rates. Cure the marginal rate problem by adopting a uniform rate of taxation, or abandoning income taxation in favor of consumption taxation, and there’s no need to treat cap-gains as somehow different from ordinary income.

Please, take it personally and if you think VAT is a good

Tbone (Diary) Friday, July 22nd at 10:30PM EDT (link)

idea, you truly are an educated fool.

Envisioning when all that is Left is the Right.

 
 

Cap gains tax should always be ZERO nt

carolina Friday, July 22nd at 10:11PM EDT (link)
 

Not LT capital gains

Freedoms Truth (Diary) Saturday, July 23rd at 12:27AM EDT (link)

“Really, we shouldn’t be afraid of abolishing the preferential treatment of cap-gains under the tax code”

Yes, we should because it is a massive investment-and-job-harming tax increase. The ONLY way to abolish the preference would be to cut the other rates down to 20% or less.

 
 

Boehner Walks!

Viator Friday, July 22nd at 6:39PM EDT (link)

http://www.scribd.com/doc/60673572/boehner-07-22-2011

We'll see.

Locked and Loaded (Diary) Friday, July 22nd at 6:49PM EDT (link)

He may be crawling – or slinking.

No GM, GE, or any GSE for me.

Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?
Matthew 20:15 NIV

Great interviews w/ DeMint & Lee on Kudlow

carolina Friday, July 22nd at 7:34PM EDT (link)

after Boehner spoke.
CCB supporters would be proud. BO sounds like an arrogant idiot.

 

Great interviews w/ DeMint & Lee on Kudlow

carolina Friday, July 22nd at 7:34PM EDT (link)

after Boehner spoke.
CCB supporters would be proud. BO sounds like an arrogant idiot.

 
 
 

Eh, I don't know.

phenry Friday, July 22nd at 6:57PM EDT (link)

Seems like a very modest price to pay for real cuts. Maybe it’s just because I’m not wealthy and capital gains don’t affect me very much, but it seems to me that capital gains come from rich people shuffling money around instead of actual work being done.

How about dropping all rates to 15%?

Tbone (Diary) Friday, July 22nd at 9:47PM EDT (link)

See, now you don’t have to think like a Democrat.

Envisioning when all that is Left is the Right.

 

There is at least one problem with your assumptions.

Flagstaff (Diary) Friday, July 22nd at 11:34PM EDT (link)

It isn’t only the “rich” who realize capital gains. Any sale of stocks, bonds, or mutual funds that have appreciated are subject to capital gains taxes, as are sales of other assets that can be considered “investment assets.”

I may be wrong, but I believe that over half of us own securities of some kind, although not all in accounts that are subject to the capital gains tax. A jump to 28% would be a tremendous problem for those of us who have to sell securities to pay our bills, which is most likely every “not rich” retiree, since without such a cushion created by years of saving and investing it is very hard to retire while being “not rich.”

Buffett Rule #1: “Tax rates don’t matter if you don’t pay your taxes”
– Unnamed tax adviser to Warren Buffett, Leavenworth, KS, 2011
Buffett Rule #2: “A parrot in every pot and two Volts in every garage”– Jimmy Buffett, at a seance in Margaritaville, 1977

 

You see "real cuts"?

edintexas Monday, July 25th at 12:01PM EDT (link)

The only “real cuts” are those made today, and those mandated by the Constitution (and the latter can often be ignored, see history). Any projections of cuts can be changed, or eliminated, in the next Congress (or even tomorrow). And that is beyond the fact that most “cuts” are simply reductions in the amount of increase, not reductions below current spending levels.

 
 

All income should be taxed at the same rate

Death_of_the_Donkey (Diary) Friday, July 22nd at 7:16PM EDT (link)

with no deductions, loopholes, or subsidies. We can eliminate all these tax expenditures and greatly lower rates across the board.

Totally agree.

d_lamar Friday, July 22nd at 7:27PM EDT (link)

I’ve been of the opinion for the last couple of decades that every dollar earned should be taxed at the same rate, and should be capped at 10%. If it’s good enough for God, it should be good enough for the government.

 

I Agree IF...

edintexas Monday, July 25th at 12:04PM EDT (link)

I agree IF there is reduction in the rates. Are you comfortable that the rates will be cut, and remain reduced, after the deductions, et al, are eliminated? Or do you think, as I do, that the deductions would be eliminated while the rates remain the same (or even increase over a longer term)?

 
 

Wouldn't it be amazing

rightwardmarch Friday, July 22nd at 10:42PM EDT (link)

if the government just taxed all income equally? Would be better than the status quo, where they pick “winners” income like capital gains to be taxed at a low rate, and sticking the rest of us with “losers” income taxed at the income tax rate.

Exactly

BigRedConservative (Diary) Saturday, July 23rd at 9:16AM EDT (link)

End all loopholes, impose a flat tax on everything. It would average out revenue-wise and prompt much more in terms of enterprise.

And two and two always makes a five
It’s the devil’s way now
There is no way out
You can scream and you can shout
It is too late now

Radiohead

 

Gee

edintexas Monday, July 25th at 12:06PM EDT (link)

Class warfare speak from someone claiming the “handle” rightwardmarch. Didn’t you really mean “rich people” instead of “winners”?

 
 

I wish I could get the money back

radicalrighty Saturday, July 23rd at 10:10AM EDT (link)

that I donated to Saxby in a couple of congressional runs, as well as his first senate run.

Redistricting moved Saxby into my district, and my friend and congressman Jack Kingston sent me a note asking me to donate to Saxby, and that Saxby “voted just like me.” Well, Jack was wrong.

Saxby has become one of the Washington elite, who by virtue of getting voted into the Senate, is now DC Royalty.

Maybe Herman Cain will primary his butt right out of office in three years.

 

The 2014 Race to Replace Sen. Saxby Chambliss

Hammer2008 (Diary) Saturday, July 23rd at 5:33PM EDT (link)

The 2014 Race to Replace Sen. Saxby Chambliss has unofficially begun. Should I be staying in Georgia these next three years, I’ll be encouraging better options to primary against him. I’d dare say (should he not pull off a coup) that Herman Cain could run him down in a primary.

I’m ashamed I helped campaign for Saxby in the 2008 runoff. His yard sign will find another use, I’m sure…

~~~~~~~~~~~~
Too much noise! “Noise! You’ll have noise enough before long. The Regulars are coming out.” ~ Paul Revere (April 18th, 1775′s eve…)


The 2014 Race to Replace Sen. Saxby Chambliss

towg Monday, July 25th at 6:14AM EDT (link)

Hammer has it right. Saxby needs to be primaried in 2014. This was the last straw for him.

 
 

Looking at the calender. Looking...

rickdeckard Sunday, July 24th at 12:52AM EDT (link)

This post is about to drop from the front page. I just want to use it check my anchor tags.

Still I think these three should think twice about stinking around. There’s always more time with family, right? Not that they’ve done anything ethically wrong, mind you. They’ve just, you know, collaborated.

Check this poll out

 

Chambliss Speak With Forked Tongue

lakeworthcane Monday, July 25th at 9:13AM EDT (link)

Just like Obama.

He has no intention of even suggesting decreasing the federal public sector’s size. He has no intention of cutting taxes. He spoke out against “Obamacare” and then unhesitatingly held out his hand when the money from it was shoveled his way.

Anything that will put more money in Chambliss’ hands is okay with him. Like most long-standing congresspeople, he cannot lead. His power comes from other people’s money. Cut off that supply and he’s powerless.

He’s been in office too long. We need leaders, not spenders. The good citizens of Georgia need to vote him out office ASAP.

 

Chambliss Will Be Voted Out

carolynr Monday, July 25th at 12:42PM EDT (link)

This is an example of a “company man”….someone that will make sure that he takes care of himself before he takes care of the nation or his oath to the Constitution. I know for a fact that the people of GA will vote this guy out in a heartbeat. BTW….He is against any drilling…THANK YOU SAXBY FOR THE HIGH GAS PRICES.

And who will be the person who beats Saxby?

mbecker908 (Diary) Monday, July 25th at 12:47PM EDT (link)

You can’t win without a candidate, who’s in the wings?

Change

Maybe Erick Erickson?

JSobieski (Diary) Monday, July 25th at 12:48PM EDT (link)

nt

Did you know that China has been losing manufacturing jobs since 1995? For the specific data, see Table 1 in the following link: http://www.bls.gov/opub/mlr/2005/07/art2full.pdf