Well that explains a lot. So you were against Reagan’s tax reform of 1986. Trump is calling it stupid that top rates were reduced from 50% to 28% and that “incentives” AKA tax shelters were removed from the tax code. Trump hugely benefited from the tax code before the reform because the tax code was funneling money into big developers as the only alternative to paying the top rate. Regarding the stand still in NY there was a stand still all over the place in commercial real estate because it had been over built. Building were built as tax shelters. Actually using them was secondary.
Yet you think that’s just fine economic policy. I see why you support Trump now. It has nothing to do with being conservative.
I also love the part about the interest deduction on home mortgages being an incentive for debt... Never mind that before Reagan’s tax reforms interest on cars, credit cards, whatever was deductible...
Now I see why we disagree so often. My mistake.
What it should explain to you is the law of unintended consequences. It hasn’t.
You and I are dead set against taxes, especially taxes that seem to be excessively high. Capital gains taxes were too high. Under Reagan they were lowered, and probably mostly because of efforts of his. I applaud that. I agreed with them at the time.
Lets think about this presentation by Trump. Wouldn’t you agree with me, he and the real estate developers like him were some of the folks we tried to help the most through that lowered taxation?
Think of that, and then think again about what Trump is presenting here. You and I would think raising taxes would be a bad thing for him. He’s telling us it really wasn’t. He used those capital gains taxes for tax advantage over all.
Lowering the taxes hurt him over all. It reduced incentives to be productive and avoid them.
Just because tax rates are high for some categories, it doesn’t mean that in the end those who exist in those categories pay those tax rates. By being productive and utilizing the tax code, the high tax rates worked out best for them.
Trump also addresses the lost ability to bundle real estate investor’s collective investments.
Look, the man isn’t going to encourage a return to old higher tax rates unless they are good for him. If it’s good for him, it’s good for other high dollar players.
I think you’re failing to understand this.
There could be times when lowering taxes on certain people is actually a negative thing to do.
You have to look case by case and make a determination. Here I think Trump is right, because it involves raising his own tax rates. It’s not some dumb Democrat advocating for tax rate hikes on others.
This guy knows his industry, and knows what works and what doesn’t.
He’s talking somewhat over our heads, but his self-interest causes me to believe his opinion here.
I believe tiered capital gains tax rates because what works for a big developer may not work for the smaller players.