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| I remember reading this paper awhile ago that the fed wrote and they were talking about in the 70’s I think when they were battling inflation the first thing they did was raise taxes thinking it would help and they said it just made it worse and it was a bad move.
You raise taxes and people are out more money so they’ll ask for money? Leading to wage increases again.
If anything raising taxes, namely capital gains taxes, would seem to make things less liquid. Or less available supply. Because people are less willing to sell. Already on long term assets let’s say it’s 25% tax. And let’s say 5% on your money forever. Say 100 acres at 10k an acre paying 300$ an acre. So 30k a year plus the chance of major appreciation from more govt printed money. Or sell now and miss out on inflation and collect 5% on your money. After you paid the 25% in capital gains taxes. Which instead of netting 50k a year depending on your tax situation, it’ll prbly be closer to 40k.
Idk I was talking about this with my dad and he was like “if capital gains was 10% he’d sell it and put it in a tbill” although I doubt he would but i think it gets the point across.
Yes commodities can come down and semi conductors are going to be a plenty before long , there does seem to be an asset price bubble maybe? Maybe not. People locked in to good rates are afraid to sell and buy new homes at higher interest rates for example.
I guess there needs to be better incentive for the churn of assets to happen by increasing supply on the market in my opinion to lower inflation. And raising taxes on assets for example won’t do that but I don’t know much
Taxing personal income will prbly lead to higher wages, less corporate profit, and then higher prices anyway to make up for lack of profit and then govt has more money and they’ll prbly just spend it more now. Rarely do they actually balance a budget but maybe? Either way it’s at the expense of the lower and middle class tax payers and in the long run prbly won’t help out but it does seem like that needs to happen eventually, balancing the budget and all but I don’t think that happens for awhile if I had to guess
Edited by Deltamudd 2/4/2024 23:54
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Jpow on 60 minutes
