Tuesday, November 11, 2008

What, Obama's going to raise taxes?

His own read my lips crap is already a topic of discussion.
For investors, especially wealthier Americans, the victory of Barack Obama's Presidential campaign has raised the fear of higher taxes.

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.
Let's hope.

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