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Posts Tagged ‘2008 election

Obama’s Proposed 87% Increase to Capital Gains Tax Exactly What the Economy Doesn’t Need…

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Senator Barack Obama has proposed moving the Capital Gains Tax from its current 15% rate to 28%, an increase in the tax rate totalling a shocking 86.6%. It couldn’t come at a worse time.

While trillions of dollars in capital has disappeared from the markets, adding a dis-incentive for investors to return to the markets is a sure-fire strategy for lengthening the current downturn. And when companies cannot readily access capital, they can’t build new plants, take on R&D expenditures or do all those other things that lead to the people on “Main Street” gaining access to new jobs.

What’s worse is that Mr Obama does not seem to understand the fundamental difference between a tax rate and tax revenue: changes in tax rates lead to changes in the way people behave. For example, Presidents Ronald Reagan, Bill Clinton and George W. Bush all cut the Capital Gains Tax. Under Clinton, it was 28%. Under George W. Bush it sits at 15%. After each of these tax cuts, tax REVENUE actually increased.

The kind of increase Mr Obama proposes therefore has a dual negative effective with no discernible upside: investment capital stays out of the market and government revenues from the Capital Gains Tax shrink.

So why would Senator Obama consider such an ill-fated move? He thinks it’s “fair”.

You can see Mr Obama’s explanation in the video below – note Jim Lehrer, the moderator, attempt three times to explain to Senator Obama that tax revenue decreases as the Capital Gains Tax increases.

Written by westcoastsuccess

October 31, 2008 at 9:24 am

5,000,000 Reasons Hillary Won’t Quit…

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The View from the North

An Exhausting Campaign

***UPDATE***

Make that 11,400,000 reasons Hillary won’t quit – she’s since “lent” her campaign another $6.4 million…

*****

Behind in delegates to Mr. Obama (by 7.8%: 1724 – 1589), losing the popular vote (by 3.5%: 14.418 vs. 13.917 million), well back in fund-raising (by 18.9%: $240.2 vs. $194.8 million) ¹ ² and deeply in debt, one wonders what good reason Mrs. Hillary Clinton has for remaining in a race which, by virtually every measure, she has no reasonable expectation of winning.

Perhaps it’s not a single reason, but rather five million reasons Mrs. Clinton won’t pull the plug on her seemingly ill-fated campaign to be the Democratic Nominee for President of the United States.

In late January, Mrs. Clinton personally loaned her campaign $5 million. As of April 1, 2008, the Hillary Clinton for President committee was $10 million in debt (not counting the $5 million personal loan)³, and that was before some very heavy spending in the run up to the Pennsylvania primary. You can see a list of creditors here. Mrs. Clinton’s only hope of seeing any of the $5 million of her personal fortune she lent herself is not only to keep the money flowing into her campaign coffers, but to accelerate the pace at which it’s flowing. Hence her direct appeal for cash in the early lines of her victory speech following her triumph in Pennsylvania Tuesday night.

That speech seems to have, if not solved her dilemma, at least significantly eased it: in the twenty-four hours following the plea for money, Mrs. Clinton’s campaign claims it raised a record $10 million 4. That ought to at least pay some of the growing list of creditors (including UC Davis, which is owed $6,350 from an event back in January (the campus is contemplating sending the debt to a collection agency 5), and $292,000 in unpaid health insurance premiums for her campaign workers 6) and may even give the New York Senator a chance of recovering her investment in her ambitions.

Various Democrats have been publicly pleading for Mrs. Clinton to end her campaign. One proposal which may have a realistic chance of meeting success would perhaps be an offer from Democratic National Committee Chairman Howard Dean that would see the DNC pick up any debts of Mrs. Clinton’s failed campaign (including her $5 million loan) if she drops out of the race by a fixed date (the sooner, the better, as far as the Democrats’ aspirations for the White House are concerned). No such proposal appears to have been put forward yet, however such a proposal might, at last, put an end to an increasingly bitter race for the Democratic Nominee for President of the United States, which lately seems to be benefiting one candidate exclusively: Senator John McCain.

Written by westcoastsuccess

April 25, 2008 at 1:52 pm