Political Things I Wonder About

[RichLB]

As will be clear from my questions, I'm certainly politically naive, but all this brouhaha over the debt crisis in the US has me confused.
1. Why is reducing the capital gains tax a bad idea? Logic would dictate that the wealthy would be far more likely to make investments in the US economy if they were not taxed on their gain. If I take a financial risk and invest in the shares of a company, why should I be penalized if my investment proves profitable?
2. The argument that the wealthy are taking their money and stashing it away in foreign accounts to avoid US taxes makes no sense to me. Such banks pay no interest (I don't think) and those with money are far more interested in making their money work for them. They may be investing in foreign countries, but I doubt they are stashing funds in accounts which don't pay off. What am I missing here?
3. I hear often a recommendation that tax incentives should be offered to manufacturing industries to keep jobs at home. Aren't we forgetting why those jobs are leaving the US in the first place? I can understand that unskilled labor costs drive many companies away, but slave wages don't exist or explain why skilled labor jobs are fleeing. Could it be that we liberals might accept that unions have elevated wages to a point that the US is no longer competitive?
4. How can any country or person justify living on borrowed money in hopes that the future will figure out how to pay the debt. I'm certainly no Tea Partier, but when the government (both Republican and Democrat) is spending money without regard to revenues (3 wars, a gloated military budget, entitlements beyond our ability to pay, subsidies for production that can't hold it's head up in the global market place, etc.) something is wrong. Why is there even an argument about the wisdom of living within our means?
5. Why does the US maintain and support so many foreign military bases? The nature of war has changed. I doubt there will be an over land invasion flowing from the now defunct Soviet Union. I suppose some military bases might be userful (maybe, athough I think with current technology, that is arguable), we certainly don't need over one hundred of them spread around the world.\

I'm confused about a lot more than just these questions, but I've done enough to prove that I'll most probably have to turn in my liberal card. Does anyone else wonder about these same things?

[Jomtienbob]

Well, for starters, the Capital Gains rate is already at the lowest level in 60 years, Just 15%, and that is after a rather hefty tax exempt amount. Contrast that with the rates on wages.

Foreign accounts do pay interest, some higher and some lower than that in the USA, but the real problem here, is that business investment in foreign countries resulting in profits are not taxed in the USA at all, until the funds are repatriated, and that means that the obscene corporate profits overseas may never be taxed.

Tax rates on the wealthy are already at the lowest levels in 70 years.

Although the American economy has doubled in size over the past 20 years, 90% of the profits have went to the top 10%. Meanwhile the middle and lower class workers have seen no increase in their wages.

I will leave 4 and 5 for the economists. I have already posted Robert Reich's take on another link.

Of course, this is all my humble opinion.