For anyone that doesn't think we are living in the Twilight Zone, you might want to read WSJ story about Obama's plans to triple tax rates on corporate dividends for anyone who makes over $200,000 a year (or $250,000 per household).
You can't 'hit' those making $200,000 without impacting everyone unless you hit them in a spot where they aren't interconnected with everyone. You hit the capital gains tax then stock prices fall - after all, why would you want to put your money in a stock where the dividend you are getting gets taxed at 45 per cent - you'd be far better off buying property with that money. So money moves out of stocks and goes elsewhere.
Who knows, perhaps that is Obama's plan to steer the rich (if you consider making $200,000 a year rich) away from stocks and dividends and back in to the housing market.
But remember, if money starts moving out of dividends, then companies stop offering dividends (or do so at lower yields) which then hurts all the seniors who are counting on those fixed returns to live on.
I stopped trying to figure out what these guys in Washington are really doing months ago. It's clear they are merely manipulating the system beyond all sane limits in an attempt to keep the house of cards from crashing down.
I get that the government is basically trying to take away every 'safe' place for rich people to hide their money, thereby forcing them to either put their money to work in ways that better benefit society (such as buying up distressed real estate) but it's a game of three-card-monte if you ask me.
Instead of trying to manipulate how people's savings are used, simply stop spending a gazillion dollars on guns and other crap that the country doesn't really need so that you don't have to squeeze everyone to the max to get the tax revenues you need to avoid going bankrupt.
Anyway, as I've said for a couple years now, the 2012 election is going to be a wild one.
Despite the markets inexplicable recovery over the past few months (a rally that has no reasoning behind it what-so-ever, other than money printing) the system is fundamentally broken with dire threats of a market crash, inflation, deflation and widespread corruption still ever present.
Dinging dividend payments for those who make $200,000 isn't going to do anything to help the economy and will most likely hurt everyone who counts on dividend payments.
Ending the corrupt plutocratic workings of Washington however would help the economy.
But like I say, when you are living in the Twilight Zone up is down and black is white and taxing people more makes more sense that living within your means. Why stop the spending party if you can simply pick the pocket of the tax payers even more.
You can't 'hit' those making $200,000 without impacting everyone unless you hit them in a spot where they aren't interconnected with everyone. You hit the capital gains tax then stock prices fall - after all, why would you want to put your money in a stock where the dividend you are getting gets taxed at 45 per cent - you'd be far better off buying property with that money. So money moves out of stocks and goes elsewhere.
Who knows, perhaps that is Obama's plan to steer the rich (if you consider making $200,000 a year rich) away from stocks and dividends and back in to the housing market.
But remember, if money starts moving out of dividends, then companies stop offering dividends (or do so at lower yields) which then hurts all the seniors who are counting on those fixed returns to live on.
I stopped trying to figure out what these guys in Washington are really doing months ago. It's clear they are merely manipulating the system beyond all sane limits in an attempt to keep the house of cards from crashing down.
I get that the government is basically trying to take away every 'safe' place for rich people to hide their money, thereby forcing them to either put their money to work in ways that better benefit society (such as buying up distressed real estate) but it's a game of three-card-monte if you ask me.
Instead of trying to manipulate how people's savings are used, simply stop spending a gazillion dollars on guns and other crap that the country doesn't really need so that you don't have to squeeze everyone to the max to get the tax revenues you need to avoid going bankrupt.
Anyway, as I've said for a couple years now, the 2012 election is going to be a wild one.
Despite the markets inexplicable recovery over the past few months (a rally that has no reasoning behind it what-so-ever, other than money printing) the system is fundamentally broken with dire threats of a market crash, inflation, deflation and widespread corruption still ever present.
Dinging dividend payments for those who make $200,000 isn't going to do anything to help the economy and will most likely hurt everyone who counts on dividend payments.
Ending the corrupt plutocratic workings of Washington however would help the economy.
But like I say, when you are living in the Twilight Zone up is down and black is white and taxing people more makes more sense that living within your means. Why stop the spending party if you can simply pick the pocket of the tax payers even more.
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