[Highwayman]

Originally Posted by Bubba

What's your point????.....

I just have some crazy idea that if you invest in a 401K with the idea that it will grow your investment in the long term that you might favor a tax policy that helps grow your money.

Fact: Cutting capital gains tax rates will, as it has in the past, cause asset values, including stock markets, to rise.

• Some people claim that lowering capital gains tax rates will cause the stock market to fall, because people would sell their investments. By this silly logic, if people want to increase stock market values, then there should be an increase in capital gains tax rates, because, then investors would be less willing to sell investments.
  
• In fact, lowering capital gains tax rates increases the prices of stocks and other assets. Stock markets reflect the collective actions of people looking forward.
  
• Lowering the cost of capital by decreasing tax rates on investment returns will increase asset values.
  
• For example, the 1997 cut in the top capital gains tax rate from 28 percent to 20 percent increased stock prices by approximately 8 percent.

Myths & Facts Of Capital Gains Tax Cut,Capital Gains Tax, What Is Capital Gains Tax, Short-Term Capital Gains, Long Term Capital Gains, Capital Gains For Nri, Concessions & Set Off, Rate Of Capital Gain Tax In India

Every round of cuts in the cap-gains tax for individuals has been a triumph. In 1978, 1981, 1997, and 2003 the capital-gains rate for individuals was cut and the stock market rallied strongly, driving sizable increases in tax revenues. Cutting the cap-gains tax is the ultimate supply-side win-win. The most recent reduction, in 2003, breathed life back into the stock markets from the moment it was conceived, triggering a remarkable rally that is still underway.

Phil Kerpen on the Corporate Capital-Gains Tax on NRO Financial

The 2003 tax cuts probably contributed to a strong stock market in 2003, which helped to increase tax revenues on capital gains. The stock market experienced the second largest percentage increase in the past decade: The broad-market indexes experienced double-digit annual growth rates after the 1997 capital gains tax cut and the 2003 capital gains tax cut.[13] This increase in equity capital helped to finance new businesses and has led to the increased job growth since the summer of 2003.

Make the Dividend and Capital Gains Tax Rates Permanent to Keep the Economy Growing