Reply #22: Higher taxes *spur* investment.

[ieoeja]

Just as you described. This is my theory on why the economy has always done so much better under Democratic presidents than Republicans. And why this time around, that has not yet happened.

Investors are still cashing out before taxes return to their 2000 level. Actually, they now appear to be in a holding pattern hoping that the taxes get lowered again. But once those taxes go up (if they go up), they will be reinvesting like mad knowing that at some future point, a Republican will lower those taxes again, and they can begin cashing out again.