Capital Gains Tax
Much discussion has occurred regarding the optimum capital gains tax rate, with some advocates calling for tax cuts in the belief that a lower rate (e.g., under 25%) will provide an incentive to investors to sell old stocks and invest in new stocks—which supply siders maintain encourages the creation of new jobs, reduces unemployment, and has the paradoxical effect of increasing tax revenues more or less immediately, an idea first proposed by economist Arthur Laffer while an advisor to Ronald Reagan (See Laffer curve).
Read more about this topic: Tax Cut
Famous quotes containing the words capital, gains and/or tax:
“It is a capital mistake to theorize before one has data.”
—Sir Arthur Conan Doyle (1859–1930)
“One who falls in a pit, gains in wit.”
—Chinese proverb.
“In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.”
—Alexis de Tocqueville (1805–1859)