For investors, especially wealthier Americans, the victory of Barack Obama's Presidential campaign has raised the fear of higher taxes.Let's hope.
Obama actually proposes tax cuts on middle- and lower-income Americans, but he also campaigned on higher taxes on the wealthy—generally defined as couples earning more than $250,000 per year. Income-tax rates could be affected, as well as estate taxes and tax rates on capital gains and stock dividends (BusinessWeek, 6/11/08).
Many economists cringe at the idea that the government could raise taxes during a recession, but Washington experts say it has happened several times in the past, when recessions and falling revenue often inflate deficits. The best hope for tax-fearing investors may be that Obama and the Democratic-controlled Congress will delay tax increases.
Tuesday, November 11, 2008
What, Obama's going to raise taxes?
His own read my lips crap is already a topic of discussion.