Obama's Capital Gain's Tax Folly

By: Dwayne Mullin

Barrack Obama is promising a lot of change and hope. That sounds nice, but I will pass on the hope. After all, even if Mr. Obama screws the country up like we have never seen, there is always hope. I'll pass on his idea of change, too. Indeed, almost every one of his proposed policy changes are outrageous and contrary to American values. There is one policy that Mr. Obama has in store that on the surface is just another democrat staple, higher taxes. However, the effects could be felt much more than usual.

Mr. Obama has said that he wants to CHANGE the capital gains tax from 15% to 30%. What is the capital gains tax? Simply put, it is money you make on investments. He wants to increase the amount of money the government takes from your investments. How does that sound for HOPE?

Isn't that a nice surprise for the person trying to live the American dream? Obama wants to tax your financial success and positive behavior. Everyone knows a person who successfully earns money and then invests it is good for the economy. It means he is produce goods and services, earning his/her own money, helping other companies and is better equipped to take care of his/her family. So why would one increase a tax on investments? Don Obama wants his cut. Okay, it's more complicated than that, but you get the picture.

For starters, what kind of message does this send to people trying to work hard and be successful? Worse yet, what kind of message does this send to people who already are lacking in HOPE? The government takes taxes out of your paycheck, taxes your income, takes your purchases, taxes your property, taxes habits they deem bad...they even tax your estate when you are no longer breathing. Why don't they just come by and take the shoes off your cold dead feet? Now Obama wants to double the amount the government takes from the gains on your investments? This would mean that your investment gains would be taxed just like a paycheck. Talk about taking away all the incentive to invest. That isn't where the damage would end. It wouldn't just effect you directly. Obama would cause an avalanche that would slam the middle class once again.

What would serious investors do if the capital gains tax increased to 30%? Obviously the idea of investing is to make more money, so taxes are the enemy of investments. So, the millionaires and billionaires that are heavily invested in the market would look to protect the money they have taken care to earn. If the government is going to take away all the benefits of being in the market they will do the common sense thing. They will leave the market. They will put their money into tax free municipal bonds just like any one would. However, the market will suffer. Volume of trading will decrease as will investment in companies relying on stock investors to fuel their growth. When companies stop growing and stock prices fall, people lose jobs and companies outsource work.

Barrack Hussein Obama frames himself as a man of the people. However, his folly in this matter would hurt middle class America in a bad way.

What HOPE does this type of CHANGE bring?