Friday, April 18, 2008
During the Democrat debate in Philadelphia this week Charles Gibson of ABC asked Obama if he was elected President would he raise the Capitol Gains Tax and the rate at which dividends are taxed? Obama answered by referring to the unfairness of CEO of the top fifty Hedge Funds making a total of 29 billion dollars. Not a very direct answer, but one used to stir up envy and animus for those who make a lot of money. What he said he would do to level the playing field was very revealing about Obama's lack of understanding of basic economics, or maybe lack of care for the average "Joe". The Obama's reported a combined income of 4.2 million dollars for 2007. None of it from stock dividends. Any proposal to raise capital gains or dividends income would have no effect on the Obamas, but would have a big impact on the 100 million Americans who own stocks. Of these 20% make less than 50,000 dollars a year, and 50% earn less than $200,000 a year.A total of 52% of all adult Americans own some stocks. Obama's scheme to raise the Capital Gains Tax from the present 15% to 28%, and a raise on the tax on dividends from it's present rate to 37% would have a major financial impact on the average American who "clings to guns or religion". It would also make a lie out of Obama's promise not to raise taxes on any one who makes less than $200,000. The Heritage Foundation did a study of the effect on personal income and the economy of our Country that raising capital gains and taxing dividends at 37% would have. It postulated that the yearly cost to the Country would be a loss of $ 90 billion in GDP, and the average family of four would pay $1675 more in taxes. The money lost is one thing, but they also project that this draconian raise in taxes would "kill 683,000 jobs"! It sounds to me as though the "CHANGE" Obama is proposing would be a bad deal for millions of Americans!