Posted on 08/15/2008 5:27:05 PM PDT by Kaslin
Lo and behold, Team Obama is moving toward the supply side and pivoting toward the political center on key aspects of its tax policy.
Writing in Thursday's Wall Street Journal, Obama advisers Jason Furman and Austan Goolsbee outlined a plan that would raise tax rates on capital gains and dividends only from 15% to 20% for individuals making more than $200,000 and on family incomes above $250,000.
Before this, investors worried that Barack Obama would double the 15% tax rate on cap gains and bring the 15% rate on dividends back to 40%.
Can investors take some relief from this? I reckon they can. And key Obama advisers say these investment tax rates will be consistent with the economic and stock-market boom of the 1990s. That's their trump card in all this.
Well, OK. But in 1997, the capital-gains tax was cut from 28% to 20%. That provided an 11% increase in retained income for the extra dollar put at risk by investors. In 2003, President Bush reduced the cap-gain levy to 15%, providing an additional 6% incentive.
With Sen. Obama's 20% rate on investment, investors would suffer a 6% incentive loss on their cap-gain incomes and a 5.5% incentive drop on dividends.
The cost of capital would rise under Obama, and investment returns would decline by 11%. Uncle Sam will keep more and investors will retain less, all while the economy is languishing.
(Excerpt) Read more at ibdeditorials.com ...
Along with corporate tax, which gets passed along to the consumer. Or at least, a reduction to 10%. Business would come streaming into this country.
LOL!
You can’t Trust someone that changes their position every other day. All Barry cares about is getting elected. Clinton came to center on taxes before he was elected, then after the election he showed his true colors. The same thing will happen with Obama he’s going to “have to” raise taxes to pay for all his socialist programs if God forbid he gets elected.
sniff, sniff, whimper, whimper.....
But ah just cain't do it. Ah cain't cut yore taxes. Ah gotta rayse them instayud."
Haw. Haw. Haw.
Obamantion, cut from the same cloth, easy to see through....except for DemoDummies.
It is in my book. :)
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