That means you need capital savings. If the federal government keeps reaching in and pulling out the capital savings of the people and converting it into consumption, then we have less to build job-creating mechanisms. So the capital gains tax clearly is going to help the economy and help job creation. No, absolutely not, because the only way people can improve their standard of living is to increase productivity. And the only way you can increase productivity is to have more capital investment.
Capital is the seed that makes the plant grow, that benefits everybody.
Now, another aspect I read of the capital gains proposal is that capital gains be indexed. Would you explain that. Support of the proposal is that the cost basis of capital gains will be indexed for inflation after the year 2000. And that means that future generations in the next century will not have their capital savings taxed when the gain is only inflation. You eliminate inflation from taxes.