- Jun 19, 2009
- 42,419
- 16,803
- 2,290
But..don't expect Obama to take the blame or Democrats to stop making excuses...mmkay
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There are at least three reasons why an Obama victory will almost surely lead to a recession in 2013:
(1) Obamas version of the Wealth Tax. As part of his reelection ploy, FDR proposed what he dubbed a Wealth Tax. As he explained to Congress in June 1935, Our revenue laws have operated in many ways to the unfair advantage of the few, and they have done little to prevent the unjust concentration of wealth and economic power. Social unrest and a deepening sense of unfairness are dangers to our national life which we must minimize by rigorous methods. [See here.]
Similarly, Obama wants to impose a number of new taxes on those he considers wealthyindividuals making more than $200,000 and families making more than $250,000. Take the dividends tax, for example, which currently sits at 15 percent. The presidents proposal will nearly triple that tax, to 43.4 percent, at a time when the Feds low-interest rate policy has driven investors toward dividend-paying stocks in the hope of getting some return on their money. Think a tripling of the dividend tax, and a 33 percent increase of the capital gains tax from 15 percent to 20 percent, just might have detrimental impact on investing?
(2) The certainty of uncertainty. The uncertainties created by the explosion of regulations, taxes and mandates (e.g., most employers must provide health insurance) will encourage businesses to remain hunkered down and sitting on their cash, unsure what challenges and costs they face when hiring and expanding.
But its not because employers are greedy or evil, which was the constant message emerging from speakers at the Democratic convention. They are doing exactly what most families do in times of uncertainty. If you know your job is shaky, or that you may see your income decline, you will likely postpone major or unnecessary purchases until the situation is clearer or more stable. Obamas policies have created massive uncertainties among employersand employees, for that matterwho will sit on their hands, and cash, a little longer if he is reelected.
And note that this uncertainty discussion doesnt include the additional uncertainty created by other factors, such as what Congress will do to address the governments debt limit coming around years end. It was this very battle that tanked the stock market in August of 2011 and led to a downgrading of the countrys credit rating. Could the economy stand a similar downturn without turning negative?
The Coming 'Obama Recession' Of 2013 - Forbes
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There are at least three reasons why an Obama victory will almost surely lead to a recession in 2013:
(1) Obamas version of the Wealth Tax. As part of his reelection ploy, FDR proposed what he dubbed a Wealth Tax. As he explained to Congress in June 1935, Our revenue laws have operated in many ways to the unfair advantage of the few, and they have done little to prevent the unjust concentration of wealth and economic power. Social unrest and a deepening sense of unfairness are dangers to our national life which we must minimize by rigorous methods. [See here.]
Similarly, Obama wants to impose a number of new taxes on those he considers wealthyindividuals making more than $200,000 and families making more than $250,000. Take the dividends tax, for example, which currently sits at 15 percent. The presidents proposal will nearly triple that tax, to 43.4 percent, at a time when the Feds low-interest rate policy has driven investors toward dividend-paying stocks in the hope of getting some return on their money. Think a tripling of the dividend tax, and a 33 percent increase of the capital gains tax from 15 percent to 20 percent, just might have detrimental impact on investing?
(2) The certainty of uncertainty. The uncertainties created by the explosion of regulations, taxes and mandates (e.g., most employers must provide health insurance) will encourage businesses to remain hunkered down and sitting on their cash, unsure what challenges and costs they face when hiring and expanding.
But its not because employers are greedy or evil, which was the constant message emerging from speakers at the Democratic convention. They are doing exactly what most families do in times of uncertainty. If you know your job is shaky, or that you may see your income decline, you will likely postpone major or unnecessary purchases until the situation is clearer or more stable. Obamas policies have created massive uncertainties among employersand employees, for that matterwho will sit on their hands, and cash, a little longer if he is reelected.
And note that this uncertainty discussion doesnt include the additional uncertainty created by other factors, such as what Congress will do to address the governments debt limit coming around years end. It was this very battle that tanked the stock market in August of 2011 and led to a downgrading of the countrys credit rating. Could the economy stand a similar downturn without turning negative?
The Coming 'Obama Recession' Of 2013 - Forbes
