Not taxing interest earnings? Capital gains? Your thoughts?

  1. American_Choices profile image77
    American_Choicesposted 5 years ago

    Not taxing interest earnings? Capital gains? Your thoughts?

    What do you think about the plan to eliminate the tax on interest earnings for those whose income is less than $200,000?

    What do you think this will do to the economy? To American debt? Will it change how you save or spend?

  2. LandmarkWealth profile image80
    LandmarkWealthposted 5 years ago

    It should be eliminated on all Americans regardless of income.  There would be an absolute explosion of capital expenditures.  The tax elimination on helping someone under 200k in income would help that person individually.  However, that would not help with capital investment in things like new plants and equipment.  Those types of capital expenditures come from wealthy individuals and corporate entities.  There is nearly 2 trillion sitting on corporate balance sheets at the moment.  Just imagine how much cash would be put to work with a Zero cap gains rate across the board.  The real risk would be more likely controlling inflation from the increase in monetary velocity.