Eliminating The Capital Gains Tax :: essays research papers

Eliminating The gravid Gains Tax     One of the study obstacles facing all entrepreneurs in the get together Stateswhen starting a fresh business or expanding an existing one is raising big(p).Here bully refers to money that people invest in a business. Investment andentrepreneurship are the heart and soul of a lively economy. There is no opposite scotch task more important than investing ones smashing into sassy ideas and stark nakedenterprises. Therefore slap-up raised from one person or a group ofprofessional investors remains a crucial base of funding for these type ofenterprises. In the type of economic world which is nonplus today theopportunity for good returns on a persons money must(prenominal) be in abundance to allureinvestments in such ventures. Capital gains revenue enhancementes significantly diminish thesereturns, therefore reducing the incentives to invest. Eliminating the capitalgains tax volition stumble entrepreneurship and new investments in the economy, whichin turn will urge on economic growth and increase the number of jobs. In orderto reorganise economic growth in the United States, taxes on capital gains shouldbe eliminated.     Members of Congress once considered a reduction in the capital gains tax consecrate from 28% to 19.8%. Combined with indexation, which is,reducing the capital gains tax by any amount would be a vital pro-growth stepinterpreted by Congress. However, given the fickle and high risk nature ofinvestments and entrepreneurships, and the immenseness of maintaining acompetitive economy in a global environment, capital gains should be exempt fromtaxation all. A zero percent capital gains tax would attractentrepreneurial risk taking, which is very important to economic growth. Itwould entice wealthy investors to invest in a certain enterprise, which in smallnumbers would immensely increase the economic growth in the United States. Inthe Wall Street Journal the U .S. Commission on civil rights said, "Reducing thetax on capital gains effectively increases the run of financial seed corn tobudding entrepreneurs." Also, from a global perspective, the United States hasone of the biggest capital gains tax rate. Depending on inflation, sometimesthe United States has the largest capital gains tax rate in the world. In acompetitive global economy a zero percent capital gains tax rate would make theUnited States a haven for capital, which in the long run will spark economicgrowth in the United States. Eliminating the capital gains tax altogether wouldnot only promote a "boom" economy in the United States but will give the UnitedStates an edge that it require to compete in the global world, not to mentioncreate new jobs.     The potential benefits for eliminating the capital gains tax are clear.