The other night at dinner, i was discussing what the tax rates would look like under an Obama administration with my mom. Someone had sent her an internet calculator which showed how much money you would be saving under Obama compared to McCain. In this calculator it was shown most people would save 3 times as much as McCain, and as he boasts, 95% of middle class families would see lower taxes. hey, that sounds nice. but there are other taxes besides income tax. Sales tax, estate tax, capital gains tax, etc. while i dont know what hes doing about sales, or estate taxes, hes made it clear he'll be raising my capital gains tax. That sounds good to me, since well, only the rich invest, therefore we should take their money, and redistribute it to the poor. wait a sec, i dont like that idea. The current rate is 15% and John McCain has said he'll keep it the current rate. When talking to Maria Bartiromo, Obama said he'll raise it, but not more than 13 %to 28%( the Clinton rate). it comforts me to know Warren Buffet is advising him, so he wont raise it too high, and i trust Buffet to know what hes doing with the economy, which is who'll be essentially in charge of it.
Where im going here is that in theory a raise in capital gains sounds nice, and makes sense (even to me). Unfortunatly, itll make a lot of upper class people kinda annoyed, since its essentially stealing more of their "hard earned" money, which they need to go to Mortons, and Ruth Chris every night. Sounds funny, but i had to pay capital gains tax the last few years, and its just down right annoying to make X dollars and then have to give some of it to the government. im pretty sure theres not much intrinsic value difference in the tax raise, but there's some emotional discomfort with big time investors who wont like it, and they'll have to spend more time finding loopholes, which is time could be spent making more money.
Bwa
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Very good, especially the recognition there are lots of tax types.
ReplyDeleteAren't capital gains taxes "sliding?" That is, depending on when you sell the position (short versus long) determines which tax bracket you will be in?
This morning, check out the NYTimes sunday magazine article on Making of MCain...it is really good and offers terrific insight into the nature and working of a high level campaign....fascinating.
Keep up the great work......