A Capital Gains Tax Hike: The Blow that toppled Japan in 1990?

C-Span Video Archives: For Good and Evil: The Impact of Taxes

Author Charles Adams suggests a hike in capital gains tax was the silver bullet that slew the mighty Japanese economy of the 1980s.  Many know our interest in analyzing today’s debt-laden economy to Japan circa 1989-1990.  Adams makes his remarks at 30:03 minutes on the embedded video.

Let those of us investors who files taxes in the United States pay particular attention to the capital gains tax rate come January 2011 when the Bush tax cuts expire. Adams claims to have taken two decades to research and write his book.  We will not be hasty to dismiss his capital gains tax warning.

Incidentally, his other remarks on Japan are fascinating for anyone who has not filed taxes in Japan. (26:23 to 30:29 minutes)

For anyone who consider the Tea Partiers of 2010 to be taking anti-government rhetoric to excessive levels,  have a listen to Adam’s recollection of the extent taken by the French populace to “express” their government dissatisfaction. (5:40 minutes)

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