tag:blogger.com,1999:blog-6616959642391988608.post1533120984258674287..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Wealth destruction on a global scaleScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6616959642391988608.post-16458359325218255002009-06-25T10:10:37.169-07:002009-06-25T10:10:37.169-07:00MW: Not sure I follow you, but yes, sales tax woul...MW: Not sure I follow you, but yes, sales tax would be a second tax on money earned. Capital gains tax is a triple tax: the first being on income, the second on the profits of the company, and the third on the gain in valuation driven by after tax profits.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14886670381786716492009-06-25T09:59:22.603-07:002009-06-25T09:59:22.603-07:00[I was looking for old posts on savings, hence my ...[I was looking for old posts on savings, hence my comments on old blog posts!]<br /><br />Scott, re: your comments on capital gains, surely the logic extends to sales taxes? I know those are taxes on consumption rather than investment, but consumption is paid for out of income which has already been taxed (probably at the Federal, state and local level).__https://www.blogger.com/profile/18426730906924848636noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-69754769627669004882009-03-13T18:11:00.000-07:002009-03-13T18:11:00.000-07:00Mark: Thanks for pointing out the Bartlett article...Mark: Thanks for pointing out the Bartlett article. I have a lot of sympathy for what he says, but I don't see the logic behind taxing gains that are subsequently consumed. Capital gains should never be taxed. Period. They are the result of money that was first earned, then taxed, then invested and put at risk. Why should you pay tax again if your risk-taking proved successful? This is like Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-49722830006102533192009-03-13T17:58:00.000-07:002009-03-13T17:58:00.000-07:00Scott,Jon S. is right. Great Blog. Otherwise I wou...Scott,<BR/>Jon S. is right. Great Blog. Otherwise I wouldn't check it out. Or harass you. Just Kidding, keep up the good work.<BR/>P.S. Bruce Bartlett had a nice article on capital gains taxes today (needless to say we were close in opinion, but had more than a few disagreements):<BR/><BR/>http://www.forbes.com/2009/03<BR/>/12/obama-capital-gains-<BR/>Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-24905564830737241122009-03-13T07:41:00.000-07:002009-03-13T07:41:00.000-07:00It's probably true that some portion of the rise i...It's probably true that some portion of the rise in wealth was due to asset prices that in retrospect were too high. Leverage undoubtedly played a role. The point I'm trying to make (should have been more explicit) is that we didn't create $40 trillion of illusory wealth gains. The output of the economy has grown, there are more people working, and therefore the decline in wealth has been Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-58065197302672568002009-03-13T07:31:00.000-07:002009-03-13T07:31:00.000-07:00Scott,Much of the wealth that you allude to was cr...Scott,<BR/><BR/>Much of the wealth that you allude to was created by excessive leverage, was it not? I agree that it was not an illusion any more than the person who sold their house at the top of the levered markets profits are an illusion. But delevering is in itself a destroyer of that pumped up wealth isn't it?<BR/><BR/>BobBobhttps://www.blogger.com/profile/18190525712352815677noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-68200725023974464622009-03-13T04:34:00.000-07:002009-03-13T04:34:00.000-07:00Scott, I take Mark the Crank's enduring presence o...Scott, I take Mark the Crank's enduring presence on this site as a sign that your blog has arrived. To paraphrase an old saying, "No good blog goes unpunished."Jon S.https://www.blogger.com/profile/14840074248344452572noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-58407548305936063322009-03-12T21:10:00.000-07:002009-03-12T21:10:00.000-07:00It was not an illusion. The Chinese economy has gr...It was not an illusion. The Chinese economy has grown 10% a year, and that's just one example. There is no way you can say that U.S. growth in the past 7 years was all an illusion.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-55442205127218779522009-03-12T20:43:00.000-07:002009-03-12T20:43:00.000-07:00The problem was that there wasn't a real increase ...The problem was that there wasn't a real increase in wealth to begin with. Sure the the real assets are still there. But there hasn't been any change (increase) in real assets in the last decade. That's the whole point. It was all an illusion.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.com