red states rule
02-27-2009, 09:38 AM
These tax increases will make things much worse
Higher taxes on investors and companies wil result in higher unemployment means more people on the welfare rolls. More people on welfare means more government spending. More government spending means higher deficits. Higher deficits leads inflation and less economic growth. Less economic growth means people and companies cutting back spending and investment
Obama is scaring the hell out of Wall St and investors, The Dow is tanking again this morning as they see how much damage Obama and the Dems will cause
Obama Seeks $1 Trillion Tax Increase in Budget Plan
Feb. 26 (Bloomberg) -- President Barack Obama proposed almost $1 trillion in higher taxes over the next decade on the highest-earning Americans, Wall Street financiers, U.S.-based multinational corporations and oil companies to pay for permanent tax breaks for lower earners.
Obama’s 2010 budget proposal, released today, would reinstate the top two Clinton-era tax rates of 36 percent and 39.6 percent, up from the 33 percent and 35 percent the richest Americans now pay. That would affect about 2.6 million taxpayers. The budget also would raise taxes on capital gains and dividends to 20 percent for top earners, up from the 15 percent set by former President George W. Bush in 2003.
The tax increases, which Obama vowed to impose as a presidential candidate, would take effect in 2011 and be the first on high-income earners since 1993. They also would reverse a course set by Bush of lowering the tax burden on the nation’s wealthiest people.
‘Obama Robin Hood’
“It’s a clear repudiation of Bush’s policy,” said Peter Morici, an economist at the University of Maryland in College Park. “It’s more Obama Robin Hood.”
Obama’s budget would keep in place Bush’s tax cuts that benefit lower- and middle-income earners, and it preserves a sliver of policy that benefits the more affluent: A preferential tax rate on corporate dividends. Before Bush, dividends were taxed as ordinary income, at rates as high as 39.6 percent in the 1990s.
“It is a hugely positive step to keep that part of the ‘03 changes,” said Pamela Olson, who was the top tax official in Bush’s Treasury Department when the tax rate on dividends was reduced. “It’s good economic policy, good corporate governance policy and good tax policy.”
Obama also proposes to stop the scheduled repeal of the estate tax next year and to impose a 45 percent tax rate on a married couple’s estate valued at more than $7 million.
http://www.bloomberg.com/apps/news?pid=20601070&sid=aFsqsDD7lF1Y&refer=home
Higher taxes on investors and companies wil result in higher unemployment means more people on the welfare rolls. More people on welfare means more government spending. More government spending means higher deficits. Higher deficits leads inflation and less economic growth. Less economic growth means people and companies cutting back spending and investment
Obama is scaring the hell out of Wall St and investors, The Dow is tanking again this morning as they see how much damage Obama and the Dems will cause
Obama Seeks $1 Trillion Tax Increase in Budget Plan
Feb. 26 (Bloomberg) -- President Barack Obama proposed almost $1 trillion in higher taxes over the next decade on the highest-earning Americans, Wall Street financiers, U.S.-based multinational corporations and oil companies to pay for permanent tax breaks for lower earners.
Obama’s 2010 budget proposal, released today, would reinstate the top two Clinton-era tax rates of 36 percent and 39.6 percent, up from the 33 percent and 35 percent the richest Americans now pay. That would affect about 2.6 million taxpayers. The budget also would raise taxes on capital gains and dividends to 20 percent for top earners, up from the 15 percent set by former President George W. Bush in 2003.
The tax increases, which Obama vowed to impose as a presidential candidate, would take effect in 2011 and be the first on high-income earners since 1993. They also would reverse a course set by Bush of lowering the tax burden on the nation’s wealthiest people.
‘Obama Robin Hood’
“It’s a clear repudiation of Bush’s policy,” said Peter Morici, an economist at the University of Maryland in College Park. “It’s more Obama Robin Hood.”
Obama’s budget would keep in place Bush’s tax cuts that benefit lower- and middle-income earners, and it preserves a sliver of policy that benefits the more affluent: A preferential tax rate on corporate dividends. Before Bush, dividends were taxed as ordinary income, at rates as high as 39.6 percent in the 1990s.
“It is a hugely positive step to keep that part of the ‘03 changes,” said Pamela Olson, who was the top tax official in Bush’s Treasury Department when the tax rate on dividends was reduced. “It’s good economic policy, good corporate governance policy and good tax policy.”
Obama also proposes to stop the scheduled repeal of the estate tax next year and to impose a 45 percent tax rate on a married couple’s estate valued at more than $7 million.
http://www.bloomberg.com/apps/news?pid=20601070&sid=aFsqsDD7lF1Y&refer=home