Monday, May 2, 2016

Bill Gates Calls for Higher Capital Gains Taxes

Bill Gates said  this morning on CNBC that investment gains should be taxed at the same level as ordinary income.

 Gates said that he's "pleased" that there is more discussion around changing the tax code.

"There's always been the question of whether taxes on capital should be a lot lower than taxes on labor," Gates said. "I tend to think they should be pretty much the same, and that that's an opportunity to be a bit more progressive."

When asked in the interview whether "the same" translated into lowering ordinary income rates or raising capital gains taxes, Gates said he preferred raising capital gains taxes.

"Well, you have to fund government," he said. "And particularly given the promises that the government's made about medical costs and retirement costs, unfortunately the one that makes the numbers add up is to move the lower tax up higher, although people don't like that. Eventually, the math really matters — otherwise you get into a Puerto Rico-type situation."

What a clown. Notice there is no mention on his part of cutting government expenses.

When it comes to understanding economics and policy, he has a very pedestrian understanding that is mostly ill-informed.

All taxes should be cut, but raising taxes on capital gains is particularly horrific since it cuts into the funds likely to go into more investment, which wich is a the core of creating an increasingly productive society.

-RW


7 comments:

  1. Here you go Bill:

    There are two ways for you to make a contribution to reduce the debt:

    At Pay.gov, you can contribute online by credit card, debit card, PayPal, checking account, or savings account.
    You can write a check payable to the Bureau of the Fiscal Service, and, in the memo section, notate that it's a gift to reduce the debt held by the public. Mail your check to:

    Attn Dept G
    Bureau of the Fiscal Service
    P. O. Box 2188
    Parkersburg, WV 26106-2188

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  2. The little shit LIED to rip off the actual DOS developer, then LIED to IBM, then used that muscle to grab a virtual monopoly on the PC software market. Microsoft hasn't developed anything in eons. They just buy out existing newcomers (think Skype), then proceed to turn the products into Microsoft garbage.
    How much of his income is U.S. taxable vs offshore, do ya think?
    Don't we already have the highest capital gains taxes in the world? Not to mention corporate tax rates at the top of the charts? Gee, jobs going overseas? Oh, it must be free trade. I swear, I'm so glad I'm too old to see the fruition of what these ass-clowns are cookin' up (Gates, Trump, Clinton, Bernie et al).

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  3. He wants capital gains taxed the same as ordinary income? Then reduce the rates on ordinary income.

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  4. The "honest" progressive thing to do would be to base marginal rates on accumulated wealth, and have a top rate of 99% for people with over $1billion. On top of that, let's make muni-bonds fully taxable to billionaires and why stop there when we could not provide billionaires with a step up in basis for donating appreciated property? And how about we prevent people like Gates from being able to avoid estate taxes by structuring their estate so that it goes to the things they want? Let the government take its 55% and then donate what's left. I think all of these things would horrible things to do, but they sure would be progressive. Of course, its doubtful Gates would ever propose these kinds of tax changes because they would run against his own interests. He knows there is a lot of envy being pumped by the politicians on both sides of the aisle and he knows he has a big target on his back, so what does he do? He offers up a sacrificial lamb or more specifically, a tax plan that will have negligible impact on his finances but will appease the envy driven loons that won't read past the headline before formatting an opinion and anointing his idea as benevolent and good.

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    Replies
    1. Spot on. Helmut Schoeck wrote about envy avoidance in his great book, 'Envy'. One never hears the word "envy" too often. People might stop and reflect too long on their motivations.

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  5. He's consistently proved that he is an economic moron.

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  6. ─ Bill Gates said this morning on CNBC that investment gains should be taxed at the same level as ordinary income. ─

    That would mean that Gates believes investment and ordinary income are the same thing. Maybe at this juncture when he enjoys a net work in the billions, he considers gains as ordinary income.

    ─ "Well, you have to fund government," he said. ─

    Incredible. Gates considers funding the government a moral imperative.

    ─ "And particularly given the promises that the government's made about medical costs and retirement costs, unfortunately the one that makes the numbers add up is to move the lower tax up higher, ─


    But, Mr. Gates, it is the government's own dishonesty behind those promises and foolishness in those who believed the promises. Why would it be moral or pertinent to extort those outside those deals to make on those promises? Am I allowed to do the same and rob my neighbor to keep my promises to my creditors?

    ─ "[...] Eventually, the math really matters — otherwise you get into a Puerto Rico-type situation." ─

    Wasn't that a problem of the Puerto Rican government's own doing? Isn't the current situation one of the Federal government's own doing?

    Leave aside the lousy economics behind Mr. Gates' recommendation. What boggles the mind is the immorality.

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