Posted on 10/04/2004 6:49:30 PM PDT by SierraWasp
SOPHISTICATED INVESTOR
Pocketbook issues
Candidates' policy differences and their affect on finances
By Thomas Kostigen, CBS.MarketWatch.com Last Update: 9:19 PM ET Oct. 4, 2004
SANTA MONICA, Calif. (CBS.MW) -- You should know the policy effect of your vote for president. And to that end, a Washington law and lobbying firm has compiled a short list of expected changes that a vote for President George W. Bush or Senator John Kerry will mean.
From energy to health care to financial services and tax and trade, Williams and Jensen looked side by side at the differences between the candidates. In some cases, policies will remain unchanged no matter who is president and in others sweeping shifts are in the wind.
"It helps [our clients] in the planning process to look forward," says David Franasiak, a partner responsible for the report at Williams and Jensen. Good advice, and a smart thing to incorporate into a sophisticated financial plan.
Specific to the financial-services industry, Kerry is in support of more financial regulation, while Bush supports less government interference. Still, if Kerry wins and Republicans retain control of Congress, few changes are expected.
The most widely anticipated change will be the replacement of Securities and Exchange Commission Chairman William Donaldson, who is expected to step down after his term expires in 2007 no matter who is president.
"In either case it is unclear who might be the next SEC Chairman," according to Williams and Jensen. "Donaldson has often sided with Democratic commissioners, so if Bush wins the election, his nominee for chairman could produce different outcomes on some issues such as hedge fund adviser registration."
Another particular policy issue that could be affected by a new incoming chairman is Regulation NMS. Regulation NMS is a plan by the SEC to modernize the U.S. equity markets, calling for, among other things, fairer trade pricing, better access to quotes and prohibition of most order pricing in increments of less than a penny. Regulation NMS generally favors smaller investors, as opposed to current rules that are institutionally biased.
Other issues that could change are mutual fund and hedge fund regulations.
Kerry has already introduced a bill in the Senate to address market timing, late trading and oversight. His bill would impose criminal penalties for violators and establish a Mutual Fund Oversight Board. While Kerry would also push for hedge fund registration, Bush won't, according to Williams and Jensen.
Insurance is perhaps the starkest issue of difference between the two candidates: Kerry would likely oppose any legislation that would move toward a regulatory model that eliminates rate/price regulation while Bush would likely support proposals that would eliminate rate regulation.
Williams and Jensen also examined the potential affects of predatory lending, higher-education loans and bankruptcy reform. The crux of change with these, however, will rely on the political party in control of the Congress.
Health care and taxes are hot buttons among the general voting public. However, the biggest expected change in the health-care industry would come at the expense of high-income households. A Kerry plan would eliminate the Bush tax cuts for the wealthy and use that money to help unemployed workers, older workers and moderate-income workers buy into a federal pool of health insurance.
It should be no surprise that Kerry stands for the most change on tax issues, as well.
On corporate taxes: Kerry would provide a new jobs tax credit for employers who encourage U.S. job creation, reduce corporate taxes by five percent, close "loopholes," increase the minimum wage and offer more tax credits for small businesses. Internationally, he would stop inversions or prevent U.S. companies from shifting their headquarters overseas.
Individually, Kerry's major difference with Bush on current rates and exemptions has to do with repealing the tax-rate cuts for people earning more than $200,000 per year (and this applies to capital gains and dividends, as well).
Williams and Jensen, it should be noted, has leaned toward the GOP Party politically, although, "we've tried not to be subjective," says Franasiak.
What is clear from a review of all potential policy changes is that new programs and agendas will come at the expense of tax cuts from wealthier individuals and a tightening of corporate regulations.
This reflects true party allegiance, with Democrats seeking more government programs and regulations and Republicans seeking less. As party designees, the candidates are expected to hold true to platform.
So, it isn't so much the man you'll be voting for but what his party and policies stand for -- like them, or not. In either case, plan for the future and examine how specific policies will affect your finances.
Perspective Ping!!!
Translation.
John Kerry 1960 Statist Liberal. The Govt must be in control of the market to protect the people from themslves.
Geo. Bush. Free Market Capitialist. Govt role is to protect people from Fraud not direct the operations of the market.
Guess I know which view a FREE REPUBIC person should favor.
A Kerry plan would eliminate the Bush tax cuts for the wealthy and use that money to help unemployed workers, older workers and moderate-income workers buy into a federal pool of health insurance
Point of fact. Kerry PROMISES this, he does not offer any ACTUAL Legislation or plan of Legislation. No where has Kerry shown HOW he would do any of this. All we have is John Kerry's PROMISE that that is what he would do with the money.
Are you near the twin cities? My Broker-Dealer is in St Paul.
Are you near the twin cities? My Broker-Dealer is in St Paul.
Yes, I live in a suburb of Minneapolis.
One of the major problems according to a lot of freepers is the fact that Kerry did not sponsor much legislation. I did not realize there was such a demand by conservatives to want more legislation.
An implication that Kerry is a conservative simply because he's indolent--or that FReepers are hypocrites for pointing it out--doesn't fly.
Now, all of a sudden, he wants to hold the highest office in the world's lone superpower? Give me a break!!! He's as worthless as udders on a bull!!! He has no personal power bank account... he's a null and void and without character!!! Other than following the Kennedys around sniffing in their wake, what the heck has he really done to benefit anyone???
Even now, the only thing he's got going is that he's not Bush and is making the farthest left element of the Demonicrat Party drool for the power they covet. The Demonicrats probably despise him, but now they're committed to him and don't dare back off. Frankly I'd vote for legislators that would pare down and eliminate frivilous legislation that's clogging up our whole system!!!
I'm glad that several conservatives got back into the fold of less legislation instead of more. The votes Kerry made on spending is a more sound argument against Kerry than his lack of legislative prowess. I wish we had more conservatives that were concerned with the excessive spending of our present Congress and adminstration. Present spending analysis results in a 13 trillion debt within the next five years. Our economy cannot sustain this if interest rates return to normal levels. The jig's up or we face a severe decline in our standard of living or ability to defend ourselves. The USSA is following in the footsteps of our mentor, the USSR.
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