We all hate taxes, and I do mean all!
But what is the focus at the moment around the world? Obviously it is the economies of both rich and poor. The US, the largest importer of goods is looking decidedly bleak – yet, to give him 0.000001% credit, Bush still wants a free market. What that actually means in his world I have no real idea – he must still think his policies are working, but is that the ploy?
The working and middle-class have paid too much in taxes over the years. The rich, and by that I mean those who are earning a 1/4 of a million a year or more, have seen their taxation drop. The tax policy of allowing those with such wealth to have less taxes is flawed in one fundamental way – they don’t spend like you and me.
They save, hoard if you wish – because once you get into the situation of having that cash – you don’t want to lose it. Yes, they do put a bulk of it in investments – much of that is gone for the moment – but once the over-inflated DOW reaches it bottom you will see that their investment flourish – along with everyone else’s I may add.
The stock market being this low isn’t a bad thing – unless you are directly effected and your company has gone belly up because of it, if you had index linked saving for retirement, that will be low to bad – but this is the main focus of the fear there is in the consumer.
If you spend what you earn right now – that isn’t going to effect the stock market for a while, and it will mean you can get some bargains if you look.
Just look at those companies that are asking for government cash to bail them out. They are all, or mostly all, international financial institutions who had greed as their mantra for so long.
NOW is the time for governments to act in such a way that will make these companies pay for the proposed tax increases that will come into effect when the upturn happens.
So will President Obama raise your taxes? No is the simple answer to that. In fact – if he does what I think he should do – he will not only be able to lower the tax burden of those under $250k a year, he will be able to give a little gift to those who make above that.
How does he do it?
Well – take that money that is available and buy as much stock as the government can with it. In effect, make the US government the major shareholder of these companies – because they are going to come back from the brink – that is guaranteed!
That is a part of the American Dream
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