Barry Ritholtz

If you want more of something tax it less.

We lowered dividends and cap gains taxes to15% back in 2001. So you got more dividends, (less reinvestment) Lots of speculation, not a lot of hiring.

We pretty much got what we ordered.
— Barry Ritholtz

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The below is for Barry Ritholtz as I am sure he will enjoy the results of tax cuts for the wealthy.

Economist have finally accepted the reality that the lower middle class will spend money from tax cuts on meeting their daily expenses.

At some point economists will finally understand the consequences of tax cuts for the wealthy.

When tax rates are low the wealthy simply invest in safe short term low return investments. This enhances receiving income when tax rates are low. A safe investment with a low annual returns takes advantage of low tax rates. This is far better than a more long term risky investment that might in a number of years might produce far higher returns since these returns might be received when tax rates are higher.

When tax rates are high the wealthy are forced to seek the higher return of long term riskier investments to offset higher tax rates. The advantage of safe low annual returns are lost because of higher tax rates.

Low tax rates for the wealthy fueled the currently unhealthy economy based upon financial instruments and starved capital for real growth that requires long term investment.

High tax rates for the wealthy would provide capital for real growth that requires long term investment.

In the current weakened economic environment high tax rates for the wealthy would be an advantage for economic growth and not a disadvantage.

Raising taxes on the wealthy would probably produce more for a healthy economy than tax cuts for the lower middle class and/or a great deal of government spending.
— bob sallamack

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• Shareholder’s acting “hopeless” in the face of their companies being pillaged:
• “Economic growth without social progress lets the great majority of people remain in poverty, while a privileged few reap the benefits of rising abundance.” John F. Kennedy
• We will remain in the bottom of the V or U or even W.

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