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That's just a guess, though. What is certain is that when capital gains tax rates drop well below income tax rates, taxpayers react. On the positive side, the lower rate brings more risky, productive investments. On the negative, it prompts more unproductive accounting games. The Tax Reform Act of 1986 tried to end the games without killing entrepreneurship by setting both rates at 28%. (A quirk in the law kept the effective top rate at 33%.) But since 1992, as the chart on the previous page shows, income and capital gains rates have followed very different paths. One inadvertent...

Author: /time Magazine | Title: Blackstone: Too Rich for Congress | 6/28/2007 | See Source »

...throughout American history, the President and Congress have gotten angry at the court only when it frustrated the will of a large national majority. In many cases in which the Roberts Court is turning right, it appears to have at least a narrow majority of the country on its side...

Author: /time Magazine | Title: Courting Controversy | 6/28/2007 | See Source »

...With a federal election due this year, there's cynicism too about the timing of the strike. But many side with highly regarded Aboriginal leader Noel Pearson, who believes that whatever the government's motives, the problem is so bad, and has gone on for so long, that decisive action must be welcomed. There's detail still to come: no one can say yet how much the response will cost, or how long it will last. But many Australians, including the federal Opposition, which has offered bipartisan support, are willing to give the Prime Minister his head...

Author: /time Magazine | Title: Saving the Children. | 6/28/2007 | See Source »

...that gives me a new perspective: sometimes, I am too busy to enjoy life and forget simple joys. I understand that is okay to feel sad, and that I should not allow the sorrow to permeate the atmosphere. Her smile tells me that I should look on the brighter side of things and be productive, get things done, rather than sulk around and dwell on the pessimistic...

Author: By Jeanne Dang | Title: It Makes the Sweet Sweeter | 6/28/2007 | See Source »

...Arab side, the summit constituted a resounding vote of support for Abbas as a worthy partner for peace and a repudiation of Hamas' rejectionist agenda. The summit effectively ostracized Hamas from the Arab fold, warning that it will have no future political role in Palestine if it does not accept the rules of democracy and reverse its coup against Abbas' authority in Gaza. In the view of Arab optimists, Abbas now more fully understands the danger that Hamas represents to his own leadership as well as the Palestinians' future. All of this represents a strengthening consensus behind the peace process...

Author: /time Magazine | Title: Good Vibes from the Mideast? | 6/27/2007 | See Source »

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