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The Market Freefall Explained

Here is what I know about Obama's tax plan: 1.) he is going let the tax cuts expire which raises the federal marginal rate to nearly 40% 2.) he is going to do away with the capital gains tax 3.) he is going to blow the caps on social security meaning every dollar will be taxed at nearly 8% (16% if you count your employer's contribution or if you are self employed), 4.) if you live California or NY, you face income taxes around 10-11%. 5.) he plans on increasing the marginal rate on the "rich" to pay for his health care for the poor. Add it all up you are looking at marginal rates of around 65% or 2/3 of income. So why would an investor get into the market now when they could lose their entire investment on the downside and on the upside they can only keep a 1/3 of of their profits? Answer is they won't and largely explains a down DOW several thousand points since his election. Now Obama cared about the market decline, he could back off on the capital gains tax, commit to keeping the Bush tax cuts in place beyond 2010 and stop talking about removal of charity and mortgage interest deductions.  If he cared about the wealth of the American people being destroyed before our eyes he would do this.  If he cared about our retirement funds and college funds he would do this. He doesn't. He wants the government in control of everything and he at the helm. This is not about America. This is about Obama and his ego and ambition. 
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