This is why over the last 45 years every time the capital gains tax rate has been raised, capital gains revenues have declined, and every time the capital gains tax rate has been cut, capital gains revenues have risen.
Conversely, when the capital gains tax rate was reduced under President Clinton, investments in new businesses increased, economic growth accelerated, unemployment fell, the stock market surged, and capital gains and income tax revenues rose to record levels, contributing to the significant budget surpluses of the late 1990s.
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But the firm still expects solid gains in revenues and operating profits for the year through next March.
However, they should make clear the most likely result will be lower capital gains tax revenues and less economic growth.
Corporate contract gains and revenues from new products and services combined with solid demand environment have driven revenue momentum in Q3 2011 for Delta.
Surpluses appeared because employment rose to 64.5% of the adult population (more people paying taxes) as a result of these events, supplemented by capital gains tax revenues and corporate profit taxes.
Moreover, they argue that taxing capital gains at higher rates would be counter-productive because people would just stop selling assets with gains and Treasury revenues would fall.
In other words, over a span of 53 years, we reduced the top income tax rate by more than 60% and cut the top capital gains tax rate by 40%, and revenues as a percent of GDP went up.
What sense would it make to raise capital gains rates and lose revenues, Mr. Buffett?
However, in the 1990s, the return of a booming economy allowed government spending cut-backs without harming the economy, which combined with a big surge in tax revenues from rising corporate profits, and capital gains taxes created by the explosive stock market of the 1990s, not only produced a balanced budget, but several years of large budget surpluses.
Originally expected to dilute earnings in 2004, the company now says the deal will add 15% to this year's EPS. Competitively, Zimmer spends 6% of revenues on research and development, and is making gains with its Minimally Invasive Solutions Procedures and Technologies, which allow patients to get new knees or hips and to go home that day.
As the market moves up and taxable investors realize gains, tax revenues increase.
While GSE's revenues and profits have risen sharply since 2006, the gains have come mostly from a lone United Arab Emirates contract.
Going over the fiscal cliff, though, would reverse those gains, with a recession lowering tax revenues and putting pressure on budgets, all while seeing their federal contributions dwindle.
Viacom attributed the result to gains in film and ad sales offsetting lower revenues from home entertainment.
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When the capital gains tax rate was raised in the late 1980s, capital gains tax revenues went down as asset prices languished and fewer assets were sold.
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At each turning in the capital-gains saga, government revenue estimators over-estimated realizations and revenues when the tax rate was raised and under-estimated realizations and revenues when the tax rate was lowered.
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Likewise, as higher tax revenues on capital gains reduce the budget deficit, this helps to reduce bond yields and so drives up the stockmarket.
Non-GAAP international revenues are calculated by translating current quarter revenues using prior quarter and prior year exchange rates, as well as excluding any hedging gains realized in the current quarter.
Its freight revenues grew by 6% annually in 2012, mainly owing to core pricing gains and higher fuel surcharges, which led to a 7% gain in average revenue per car in 2012.
And the ever-rising stockmarket produced unprecedented capital-gains-tax revenues.
In the late 1990s, coincident with the Internet bubble, federal revenues from the progressive income tax, spurred by the enormous realization of capital gains and Wall Street bonuses, grew much faster than GDP, rising briefly above the long-run 18% average to more than 20% before the bubble burst and the stock market crashed in 2001.
For over 40 years now, and possibly more, every time the capital gains tax rate has been increased, revenues have declined.
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Rising revenues are nice, but big gains in operating income (net income before depreciation, interest and taxes) and cash flow from operations are even better.
The data on capital gains rates over the last 40 years clearly shows that government revenues, job growth and prudent risk taking all increase when rates are lowered and kept that way.
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R. 8 increases the tax rate on capital gains, and every time in American history that this has been done, tax revenues have gone down, not up.
And while Heiliger does not know exactly how OneID will generate revenues, he does think that as it gains acceptance among these platforms, they will see the benefits of using OneID and be willing to pay.
By contrast, when President Clinton agreed with congressional Republicans in 1997 to cut the capital gains tax rate from 28% to 20%, critics wrung their hands, predicting revenues would drop and deficits would increase.
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