[JohnGalt]

This illustrates why Bush's tax cut will not stimulate growth when government debt draws most of the dollars. (40 years at 7% is approaching life insurance returns!)

Without a capital gains tax cut that rewards investment, there is nothing in the short term to spark growth.

[demsux]

Without a capital gains tax cut that rewards investment, there is nothing in the short term to spark growth.

Amen, brother...

[gridlock]

Why would anybody invest in a profit making enterprise when he can get 7% tax-free from California? That's money right out of the productive market.

There's no such thing as a free lunch. Eventually, the piper will need to be paid. California can play the shell game for a while, but the tobacco settlement money is a one-shot deal.

BTW, wasn't that money supposed to be going to medical costs or for anti-smoking efforts, and stuff like that?

[Kaisersrsic]

This year's tax cut on dividends is designed to generate capital gains tax revenues by encouraging the sale of growth stocks. Next year's cut in the capital gains tax rate will wring even more unrealized gains out of the market. Once the government is done collecting, a real fix to the capital gains tax may actually happen.

Oh, and on the California, drop dead front . . . guess what state has high State income tax rates and a ton of individuals who are going to get pushed into the Alternative Minimum Tax as a result of the current tax reform proposal. Unintended consequences my *ss, its drop dead time.

[habs4ever]

Nonsense.What do you think the excludable distribution account is but a quasi capital gains tax cut? Brush up on the tax plan before you attempt to disparge it. the non sequitors in your post are absurd.