The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital from static to more dynamic situations, the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth of the economy.
Interpretation
Capital gains tax influences investment habits and economic growth.
John F. Kennedy's quote emphasizes the profound impact that tax policies, specifically the tax on capital gains, have on investment decisions and the overall economy. It suggests that such taxes can either encourage or hinder the movement of capital, thereby affecting new businesses' ability to acquire funding and ultimately influencing economic growth and dynamism.
In practice
In a discussion about economic policies during a seminar on investment strategies.
The great battleground for the defense and expansion of freedom today is the whole southern half of the globe... the lands of the rising peoples. Their revolution is the greatest in human history. They seek an end to injustice, tyranny and exploitation. More than an end, they seek a beginning.
I had always enjoyed the title of Commander-in-Chief until I was informed ... that the only forces that cannot be transferred from Washington without my express permission are the members of the Marine Corps Band. Those are the only forces I have. I want it announced that we propose to hold the White House against all odds at least for some time to come.
I am talking about genuine peace, the kind of peace that makes life on earth worth living, the kind that enables men and nations to grow and to hope and to build a better life for their children - not merely peace for Americans but peace for all men and women - not merely peace in our time but peace for all time.
I just received the following wire from my generous Daddy; Dear Jack, Don't buy a single vote more than is necessary. I'll be damned if I'm going to pay for a landslide.
Tolerance implies no lack of commitment to one's own beliefs. Rather it condemns the oppression or persecution of others.
Mankind must put an end to war before war puts an end to mankind.
The market economy-capitalism-is a social system of consumers' supremacy.
If a financial institution has business operations in the United States, hires people in the United States, if they are clogged with illiquid assets, they have the same impact on the American people as any other institution.
In our high-tech, high-skilled economy where low-skilled work is being scaled back, phased out, exported, or severely under-compensated, all the right behavior in the world won't create better jobs with more pay.
A universal basic income would be the best way to give everyone the opportunity to do more unpaid but incredibly important work, such as caring for children and the elderly.
Developing economies may not have much control over the headwinds that they face today, but that does not mean that they are powerless. Much can be done not just to sustain moderate growth but also to secure a more prosperous and resilient future.
No nation was ever ruined by trade.
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