Now that Obama is President it is clear we won't be relying on dynamic scoring to address the deficit and real revenue will be included in the plan. So the question is what revenue is best and worst for the economy. My thoughts: Taxes on the 90%: In real income terms this segment of the population has seen income fall. Most save very little and spend trying to keep up with real income. Taxes here will come directly out of the economy. Conclusion: Horrible for the economy Taxes on the 10%: In real income terms, this segment has seen its income grow substantially. Given their income growth they are able to absorb increased taxes without affecting spending and the economy. Given most of them have geographically diverse portfolios any impact on US investment will be muted. The exception to this would be those investing in small businesses where the impact would be severe. Conclusion: slightly negative to the extent small business owners make up that 10% (does anyone have the data) Corporate Taxes: These taxes are already among the highest in the world and dissuade Corporations from bringing money back into the US where it could be invested for US jobs. For local companies it makes it very hard to invest in hiring new workers and be competitive with firms in China. Conclusion: Severely negative and in fact should be reduced. Capital Gains Taxes: These taxes historically have been reduced on the assumption investment will generate local jobs. Today that is no longer true as most wealthy investors diversify globally and the US only gets at best a third of the investment. In addition the low capital gains rate lowers the hurdle for hedge funds who want to buy US companies and drive profits by outsourcing employees. Conclusion: Nuetral to Positive for the US economy. Capital Exportation Taxes: Not known in the US but heavily used in Asia these taxes penalize corporations from extracting cash from the local economy. The goal is to insure money made from the local market gets invested back into the local market rather than repatriated to another country to grow that market. Conclusion: Positive for the US economy at moderate levels.