House Readies Bill to Zero Out Capital-Gains Taxes on Small Firms - WSJ.com

TRICKS UP GOVERNMENT SLEEEVES: House Readies Bill to Zero Out Capital-Gains Taxes on Small Firms - WSJ.com

Somehow, the picture of trying to manipulate the economy as indicated by the above bill, is countered by all the other tax shenanigans (not least of which is the carried interest bill - which, somehow suggests you have 18 months or so to invest in a small business, but you better not have too much money or make to big an investment or be too successful - the liberals are out to tax you to pay for their programs).

The government can't bring itself to confront the real dilemma it has both inherited and blown out the ceiling on its own - which is the idea that people are entitled to benefits first. Then both by taxing anyone who is successful and running up government credit card like debts with no limit, somehow people should feel confident creating jobs and risking capital and be willing to invest long hours - maybe hoping for a big gain; but, with the real worry starring them in the face that any big gains will have to be sacrificed to government efforts to support outrageous union pensions, healthcare for non-producers, unaffordable early retirements, etc., etc., etc.

The deck is loaded against small business. Higher interest rates are only a matter of when, not if. And, it doesn't take a genius to figure out that Greek style policies are running a muck through the Democrats in Congress.

The Republicans have also not shown themselves in the past to have the stomach to rein in government spending - sadly, just the opposite.

So, the betting odds would seem to favor the need for much worse times to come before their could be even the hint of a political consensus to provide enough to the private sector to let it earn a rate of return that would justify job creation.

And, the cost of labor has to come down. Not in terms of direct wages, but in terms of government taxes and indirect costs mandated by government.

Will it happen? Sure looks like the small businessman is smart enough to know not to bet with charlatans!