Lower Long Term Investment Tax Rates

With Romney releasing his tax returns showing his effective 13.9% rate, it should become obvious to the U.S. that investing in companies is a great deal.

At lunch the other day, a friend tried to tell me that buying a company’s product has the same effect as investing in the stock. This is not true because you receive instant gratification for your payment, while your investment is at risk and may pay you back over time. Additionally, your investment can be leveraged given accepted capital structure practices in the U.S., while your purchase is often not.