Private Equity Buyouts – Grassly Republican or Socialist – You be the Decider -OR- Dumber and Dumb

Republicans need to understand one very important concept.  You can not be a democrat-lite and expect to win an election.  No one who votes republican is going to get very excited about turning out to vote if all you do is the same thing only less of it than the Democrats.   That’s just dumber ( dems ) and dumb ( republican).

Mr Charles Grassly, republican senator from Iowa is proposing to declare war on private equity buyouts of public companies.  Not only is Grassly the ugliest senator ( no easy task ) but he is turning out to be one of the dumbest republicans going.  If he wants to be a dem why doesn’t he just switch parties when he runs again. 

The American economy only has a few things going for it.  We here have to fight an economic battle against nations with extremely low wage structures in comparison.  The only way one does this successfully is to not have as screwed up society / more business friendly government.  ( they are the same thing.  business environment is a direct barometer of how honest the citizenry is.  Socialism is just another word for thievery.  )

Excerpt from arty:

Private equity firms usually take a 20% profit share, or “carry,” on their complex deals. Under current law, the carry is subject to the 15% long-term capital gains tax. Grassley wants it taxed at the 35% rate for ordinary income. The New York Times has hailed this “Grassley Tax” on jobs and capital as the first step toward a general capital gains tax hike — a surefire means of pulling the rug out from under the vibrant economy.

 

Our federal government lives such fist to mouth existance because its such a poor money manager.  What private business would be perpetually in the red with their business model ???  I mean if I could simply take 50% of every damn business deal out there I’d have to be retarded not to be way in the black.  But our government is in the red so its safe to assume that the institutional retardation factor is extremely high. 

Thus I make the argument that our government and Mr Grassly in particular neglects to realize that when private equity buyouts make our businesses more efficient they end up paying more taxes over the not so long term because defunct businesses pay NO taxes.  It makes me think he’s smoking Grassly. 

In addition this type of freedom to maneuver is arguably the only reason why there is ANY business in the USA.  High labor costs are hard to overcome!  If you do not believe this its only because you do not understand it. Try running a business and then come back and argue with me if you dissagree. 

Private equity buyouts as mentioned in the linked arty above is the intensive care of companies.  Changes that simply can not be managed under the public company regime of operation.  And they say they are for lower health care! This will drive the cost of fixing companies UP.

Another angle on this is that our publicly traded stocks are valued on the basis of what people will pay for them.  If buyouts are curtailed it will have direct basis on stock prices.  Look for a downward correction if not full on crash of the stock market if they get this tax increase through.   ( btw: its actually a backhanded tax cut because as they make the American economic system less viable their tax receipts will go down ).  This is not the type of tax cut you want!