Friday, December 23, 2005

Are We a Plutocracy?

After the new year, the lawmakers are considering extending President Bush's tax cuts on capital gains and dividends through 2010 (the tax rates on gains and dividends are set to increase after 2008). I cannot believe we are even considering this when the plans also include cutting the budget for many programs the poor depend on. We are at war, we have experienced the greatest natural disaster this country has ever seen, and our deficit is at an all time high, yet our government wants to give the wealthy more money and take it away from those who really need it.

I know they say it will help stimulate the economy but historically, there in no evidence showing a relation between capital gains and economic growth. Business are left with more money that they can invest back into their company, but at the same time it also creates incentive for unproductive tax shelters that hurt the economy in more ways than one.

Right now, the top tax rate on capital gains and dividends is 15% and the top tax on income is a much higher 35%. When tax rates on investment gains are much lower than that of business income, tax lawyers find ways to make that ordinary income look like capital gains therefore cutting the taxes on that income in half. That income is sheltered and not only is that money not helping our economy become more productive, that money is going to work to line the pockets of the richest people in this nation who many times will end up paying nothing in taxes.

The Wealthy can organize their finances in ways that the government does not recognize.
For ex: offshore accounts, partnership devices, limited liability companies, so only a small portion of their income gets reported to the government as opposed to their real income whereas if you are strictly a wage earner, which most of us are, all wages are reported therefore making it almost impossible to hide any of your income.

Our tax system is already set up to benefit the rich but it seems we are heading into dangerous territory, considering at one time the tax rate on capital gains was at an all time high of 49.1 percent in 1978. I do not advocate escalating the rate that drastically, but reducing it to more than half of what the tax rate is on income is definitively not the answer.


kevinlando7113 13:58  

Make no mistake: Our mission at Tip Top Equities is to sift through the thousands of underperforming companies out there to find the golden needle in the haystack. A stock worthy of your investment. A stock with the potential for big returns. More often than not, the stocks we profile show a significant increase in stock price, sometimes in days, not months or years. We have come across what we feel is one of those rare deals that the public has not heard about yet. Read on to find out more.

Nano Superlattice Technology Inc. (OTCBB Symbol: NSLT) is a nanotechnology company engaged in the coating of tools and components with nano structured PVD coatings for high-tech industries.

Nano utilizes Arc Bond Sputtering and Superlattice technology to apply multi-layers of super-hard elemental coatings on an array of precision products to achieve a variety of physical properties. The application of the coating on industrial products is designed to change their physical properties, improving a product's durability, resistance, chemical and physical characteristics as well as performance. Nano's super-hard alloy coating materials were especially developed for printed circuit board drills in response to special market requirements

The cutting of circuit boards causes severe wear on the cutting edge of drills and routers. With the increased miniaturization of personal electronics devices the dimensions of holes and cut aways are currently less than 0.2 mm. Nano coats tools with an ultra thin coating (only a few nanometers in thickness) of nitrides which can have a hardness of up to half that of diamond. This has proven to increase tool life by almost ten times. Nano plans to continue research and development into these techniques due to the vast application range for this type of nanotechnology

We believe that Nano is a company on the move. With today�s steady move towards miniaturization we feel that Nano is a company with the right product at the right time. It is our opinion that an investment in Nano will produce great returns for our readers.

Online Stock trading, in the New York Stock Exchange, and Toronto Stock Exchange, or any other stock market requires many hours of stock research. Always consult a stock broker for stock prices of penny stocks, and always seek proper free stock advice, as well as read a stock chart. This is not encouragement to buy stock, but merely a possible hot stock pick. Get a live stock market quote, before making a stock investment or participating in the stock market game or buying or selling a stock option.

Petitions by|Start a Petition »

  © Blogger templates The Professional Template by 2008

Back to TOP