Capital will flee the U.S. more quickly as this and other taxes rise in
the future — to pay for government spending. It's as if Uncle Sam didn't
want us to invest in stocks and business. He'd rather we buy his bonds
at a paltry 2% and take a loss due to inflation being 6–8% or higher.
But these bonds have not only price risk but their default and inflation
risk go up when the economy slows. As I say, capital will be looking
elsewhere for places to invest.
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