Tags: hillary clinton | tax | president | invest

Hillary Clinton's Tax Proposal Just Crazy for Investors

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Sunday, 26 Jul 2015 11:04 PM Current | Bio | Archive

When I saw Democratic presidential candidate Hillary Clinton explaining her vision for changing the tax system I suddenly thought of the 1990's informational nutritionist Susan Powers and her "Stop the Insanity" pitch.

Our economy is volatile. Investors are being warned that they had better be ready to be awfully nimble because the markets are so uncertain. Making this situation even worse is that one of the greatest dangers facing investors is the unstable and unpredictable income tax system which severely impacts every investment decision.

For income taxes, the government has gone crazy.

The income tax code is already a monstrosity which distorts virtually every aspect of the economy.

The tax system is so outrageous that as a practical matter the government can no longer administer it. And the taxpayers can't comply. It is the least efficient method of raising revenue for governmental needs while being the source of most governmental corruption.

How does this happen?

Congressional tax policy is controlled by the Senate Finance Committee and by the House Ways and Means Committee. Just like their predecessors, Senator Hatch and Representative Paul Ryan, the chairman of the respective committees, have any background in taxation. Neither does the Secretary of the Treasury, The Commissioner of the Internal Revenue Service, nor the president.

Every time there is an election coming up, how to reform the income tax code is among the most contentious of the political issues being hotly debated. An absurd electioneering exercise given that, in reality, every politician engaging in the debate is utterly tax ignorant.

I think the current tax system provides the means for the Democrats and Republicans to raise enormous amounts of campaign contributions. I guess they just accept as unavoidable collateral damage that it cuts the legs out from under the American economy.

There is almost nothing more destructive to the United States capitalist free-market economy and, investor's financial security than the removal of precious private capital by governmental taxation.

This is the context in which Mrs. Clinton dramatically unveiled her tax proposal pitch demonstrating what she would do if elected president.

She thinks that people are not investing properly and that they are not paying enough tax. Her proposal is to eliminate the single long-term rate on investments held for more than one year.

Mrs. Clinton is for six tax rates for investors holding investments between two and six years. No doubt she learned something about the benefits of long term investing from her vast experience with making money in cattle futures.

To Mrs. Clinton, short term investing is bad for investors and she wants the government to incentivize investing for the longer term. Mrs. Clinton thinks she knows what behavior is best for private investors, the American economy, and how to make sure she, if she becomes president, gets to tax it all to the max.

Mrs. Clinton's tax proposal, it is fair to say, is crazy for investors.



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Kleinfeld
When I saw Democratic presidential candidate Hillary Clinton explaining her vision for changing the tax system I suddenly thought of the 1990's informational nutritionist Susan Powers and her "Stop the Insanity" pitch.
hillary clinton, tax, president, invest
485
2015-04-26
Sunday, 26 Jul 2015 11:04 PM
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