NY governor gives gloomy outlook on state economy

[Wretched Excess]

um, aside from being a very unfortunately worded headline, considering that the man is legally blind, it is
interesting to see that at least one democrat is willing to concede the relationship between capital gains,
capital gains taxes, and government revenues.  not that I buy into the argument the argument, mind you, that
government revenues should be in any way part of the consideration when setting capital gains tax policy;
but fairness (Barack Obama's overriding consideration) certainly seems like an utterly foolish thing to consider.

the point is that more or less the same thing will happen if you raise capital gains taxes;  capital investment
will dry up.  but I was also pretty alarmed at the level of taxation levied at a single business;  "New York's banks
and brokerages generate one out of every five tax dollars in the state".  ONE of out EVERY 5 DOLLARS?!?!

the damn state deserves to go under.

NY governor gives gloomy outlook on state economy
ALBANY (Reuters) - New York Gov. David Paterson on Tuesday gave a more dire outlook on the state's economy, saying that Wall Street bonuses could be slashed by 30 percent to 40 percent this year and tax revenues on capital gains could also fall much more than he previously estimated.

Paterson, who said the state may be facing its worst hardships since the Great Depression, said economists he had consulted told him that tax revenues on capital gains could fall as much as 35 percent.

Paterson spoke on Albany radio station WCBI ahead of an emergency legislative session he called to address the state's budget shortfall.

Paterson said his previous forecasts for a 10 percent to 20 percent drop in Wall Street bonuses and a 16 percent to 24 percent fall in capital gains tax revenues, likely were wrong.

New York's banks and brokerages generate one out of every five tax dollars in the state, and bonuses comprise a large portion of the income earned by many Wall Streeters. The bonuses, which have fallen with Wall Street's profits, and capital gains, which have been hurt by the steep decline in stock prices, are critical drivers of state revenues.

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[Lacarnut]

Saving for a rainy day is foreign to most of these political critters. Same could be said for many idividuals who think the good times will never end. 

[SSG Snuggle Bunny]

Capital Gains Taxes should be set according to what is fair.

Howerver...

...what is fair is how many people can be productively employed thus generating the most revenue through economic expansion NOT how much money can be shunted through the hands of politicians and bureaucrats.

It's amazing how the Haves and Have-Nots are told what is fair according to the law of the Gimmes.

[rich_t]

I don't think there should even be such a thing as a capitol gains tax.

[SSG Snuggle Bunny]

I don't think there should even be such a thing as a capitol gains tax.

I think it should be subject to Truth-In-Advertising laws.

CGT should be renamed the How-Much-Money-Shall-We-Not-Make-Today Tax.

I read recently (though memory fails as to where) that if we were to make the US a tax haven the money flowing into the US from around the world could add $1 Trillion in tax revenues each year.

[rich_t]

I've read that one of the reasons that so many US companies are "off shoring" jobs these days is over our punitive tax laws.

[SSG Snuggle Bunny]

I've read that one of the reasons that so many US companies are "off shoring" jobs these days is over our punitive tax laws.

Coupled with prohibitive regulatory authorities, absolutely.

Now, I'm am not reflexively against all regulation because the basis of any sound economy is a firm basis in the terms of all transactions; i.e. if two men agree to trade 10 pounds of flour for $1 they have to have a common defintion for the terms "pound", "flour" and "dollar" and having a central repository of those terms is essential in case one should sue the other the courts need not re-eastablish the terms with each individual case. Also a regulatory body that can ensure flour is not being cut with chalk dust--as was once the historical case--to the defrauding and ill-health of the public at large can be sound business. That's why Art 1 allows congress to set the standards on weights and measures and it is a wise inclusion. Alas, congress, as with so many things, has far exceeded its mandate.

[rich_t]

Now, I'm am not reflexively against all regulation because the basis of any sound economy is a firm basis in the terms of all transactions; i.e. if two men agree to trade 10 pounds of flour for $1 they have to have a common defintion for the terms "pound", "flour" and "dollar" and having a central repository of those terms is essential in case one should sue the other the courts need not re-eastablish the terms with each individual case.

I absolutely concur.

Alas, congress, as with so many things, has far exceeded its mandate.

Indeed they have, usually to the detriment of the US.  IMO.

When I read the COTUS it is clear to me that the Founding Fathers never intended Congress to be a full time job to begin with.  They cetainly never intended it to be the abusive elitist organization that it has become.

[Wretched Excess]

Capital Gains Taxes should be set according to what is fair.

Howerver...

...what is fair is how many people can be productively employed thus generating the most revenue through economic expansion NOT how much money can be shunted through the hands of politicians and bureaucrats.

It's amazing how the Haves and Have-Nots are told what is fair according to the law of the Gimmes.

I was referring to a comment that The BarackStar! made in one f the debates, wherein he said that capital gains taxes should not be cut despite the fact that history bears out the fact that when they are, goverment revenues actually increase.  when asked why, he said it was a "basic issue of fairness".

"fairness", as it turns out, is entirely too subjective a term to have any value or meaning when it comes to tax policy.  and people that employ that term in that particular debate are always trying to hide their true goals.

[SSG Snuggle Bunny]

Capital Gains Taxes should be set according to what is fair.

Howerver...

...what is fair is how many people can be productively employed thus generating the most revenue through economic expansion NOT how much money can be shunted through the hands of politicians and bureaucrats.

It's amazing how the Haves and Have-Nots are told what is fair according to the law of the Gimmes.

I was referring to a comment that The BarackStar! made in one f the debates...

As was I, friend.