They are going to holdup the so-called bail-out for, get this...

[WCGreen]

A suspension of the capital gains tax for two years...

Not any real fiscal stimulus, but a complete removal of the Capital Gains tax for two years.

Now that is just a hand out to the wealthy. A little goes to the middle class and poor folks, well, you should have invested.

But here comes the rub; property values have crashed, stocks have lost about 25% and high priced equipment is already being depreciated. There would be little to no stimulus from eliminating the capital gains tax for two years.

So, the so-called populists of the republican party are holding up the bail-out that is, with out a doubt, going to save a lot of financial headaches for those who summer out on the Hampton's, t give those very same people a potential huge tax cut.

And they were afraid the Dem's would clutter the bill with give aways to the poor...

Bizarro world...

[MichiganVote]

1. Limits on executive pay and golden parachutes=capital gains BS.

[AlCzervik]

2. i was just about to post that! McCain wants to help more rich folks.

the rest of us can pay the bill and sod off.

Republicans---You cannot tax cut your way out of this mess assholes!

[WCGreen]

3. The thing is if they sell their assets now...

They probably wouldn't be paying that much in capital gains so there really is no incentive...

It's mind boggling.

[AlCzervik]

6. i'm sure it will be retroactive to when those stocks had value.

like a little extra bonus.

[WCGreen]

16. That couldn't do that...

It would be a nightmare for people who sold stock already and also for the IRS.

But you know, it would be a boon to me since I do taxes for a living....

If I was a republcian I would say BRING IT ON!!!!

But since I put country first, FUCK 'EM.

[redstate_democrat]

4. Let me tell you what happened.

It's quite simple.

Monday, Tuesday, and Wednesday, banking and corporate lobbyists were SWARMING Capital Hill with their own plan and what you see Boehner presenting now is THAT PLAN.

The lobbyists have effectively hijacked the deal, with McCain's blessings.

[geiger]

5. SICKENING. Just downright sickening. eom.

[Democrats_win]

7. NO WAY do we eliminate the CG tax! Scrap the whole thing.

[alcibiades_mystery]

8. NO FUCKING SUSPENSION OF CAPITAL GAINS!!!! FUCK THAT

That's a fucking deal breaker.

[Starbucks Anarchist]

13. Yeah, what you said!

:mad:

[CaliforniaPeggy]

9. You think they can't get any more stupid...

And then they do...

I am sick of this.

K&R

[smiley_glad_hands]

10. More of the same. eom

[progressoid]

11. Great

[FatDave]

12. Is there a link for this?

Not that I don't believe it, but it seems almost too insane.

[spanone]

14. of course, obama was gonna raise it on those making 250,000 or more, so they'll just eliminate it

[Bad Thoughts]

15. How will this bring liquidity to the market?

If I'm not mistaken, getting tax breaks won't move money when there is no money to move. It might seem like a big giveaway to the rich, but I think they want (and maybe, need) the bailout.

[WCGreen]

17. When Capital Gains are basically zero....

People sell stocks that they were holding for a day when they could have a tax advantage. There for, more money injected into the system via the sale of stock and other Capital Assets.

It also rubs right up against the Inheritance Tax as well as gifting to heirs, or what we normal people call, children. Even less revenue.

It could also be a deflation trigger as people who have been holding assets sell them in such a number that the price of stock actually goes down and the price of real estate would actually decline even further as investors look to realize their capital gains when they owe no taxes.

[mzmolly]

18. That way when they profit from the mess they've created, they wont have to pay

a tax on it.

[mzmolly]

19. Who Pays Capital Gains Tax?

Fewer than one in seven individual income taxpayers reported taxable capital gains in 2006. Over half of taxpayers with gains had incomes below $75,000, but most capital gains were reported by very high income taxpayers. The 3 percent of returns with AGI over $200,000 reported 31 percent of AGI and 83 percent of capital gains; the 0.3 percent with AGI over $1,000,000 reported 15 percent of AGI and 61 percent of capital gains. Many more Americans accrue capital gains on corporate shares they hold within tax-deferred employer-sponsored retirement plans, but they do not pay capital gains tax on these gains.

http://www.urban.org/publications/1001201.html

[Life Long Dem]

20. Timeout!

That's all I wanted to say.

[JohnnyCougar]

21. Nobody's paying capital gains tax anyways.

Because everybody is losing money.

This is an absolute farce.

[WCGreen]

25. That's the point...

[Life Long Dem]

22. Okay maybe not all I want to say...

So this on the brink disaster will look like it will take 2 or more years to fix with less in taxes? Two years doesn't quite sound like we are on the brink.

[AtomicKitten]

23. The bigfoot of nofuckingway needs to come down hard on this mess of a plan.

[BlooInBloo]

24. All they're about is blackmail - hahaha! Just call the bluff.

[truthisfreedom]

26. If you eliminate CG tax, you eliminate the writeoffs from the losses against any gains they have.

There is NO incentive for such a ridiculous proposition.

[jeanpalmer]

27. It tells you they're playing games with this "crisis"

There's no chance of that passing, so why are they bringing it up. What's their calculation? I can't figure it out.

If there really is a crisis of the kind described by Paulson and Bernanke, do they want to be the ones to tank the banking system and the economy?

I'm thinking it has more to do with Palin. She's a disaster waiting to happen. If she has to debate, McCain loses. And loses big. The Repos have to have an excuse to derail that debate, and this finanicial crisis is going to be their excuse. They've found they can stabalize the markets by hinting at agreement on the bailout, so they're going to do that until Palin's debate date passes.

That's why the most important thing Obama has to accomplish tomorrow night is to convince people that the debates have to go forward. That McCain is wrong to dodge debating. And that it's especially important that Palin have to debate. He should address the issue directly, say that no one knows what her positions are on national issues, that she hasn't been subjected to questioning over a long campaign, and a debate will show where she stands on the major issues. He can say that he subjected himself to debates, why should she get out of them.

IMO Palin is going to be the thing that turns this election. If she can avoid the debate, she's home scot free. If she has to debate, McCain collapses. Obama has to hold their feet to the fire and draw a line right now. Don't let them trial balloon it into reality.