Tags: denis | klenfeld | Obama | Tax | Plans | Horror | Investors

Obama Tax Plans: A Horror Story for Investors

By
Monday, 20 Jun 2011 08:23 AM Current | Bio | Archive

Remember when Dracula sinks his fangs in the victim's throat and drains the blood? Well, that is effectively the economic scenario that President Barack Obama proposes for 2012.

If he gets his way, the federal government will drain the country of investment capital to fuel more welfare give away programs. To pay for this, the government will need to get the money from somewhere. That somewhere is your investment money.

How did I come to this conclusion? Actually, it's the obvious conclusion after reading the Joint Tax Committee's "Description of Revenue Provisions Contained In the President's Fiscal Year 2012 Budget Proposal."

The Joint Committee is made up of five members of the House and five members of the Senate. It's an impressive group which includes such luminaries as Congressmen Rangel and Levin, and Senators Grassley and Baucus. Basically, some of the guys who voted over the years for the spending bills that created the growing deficit year after year.

President Obama has a strange concept of revenue.

The "Tax Cuts for Families and Individuals" are not tax cuts at all.

They are tax credits to expand the welfare state and increase dependency on the government. A good way to reward loyal voters for re-electing the good President Obama who gives us all that money even if we didn't pay taxes.

Right off the bat there is a $250 newly created giveaway to "Provide" the "Economic Recovery Payment and Special Tax Credit." This is followed by an increase in the Earned Income Credit, an expansion of the Child and Dependent Care Tax Credit, an Automatic Enrollment in Individual Retirement Arrangement, an extension of the American Opportunity Tax Credit, and an increase in the capital gains rate for "Upper-Income" Taxpayers.

Wouldn't you love to be in the class that gets provided, increased, expanded, automatic, and increased. Well, you're not and never going to be.

What is in store for business? Business is going to get such revenue generators as Enhance and Make the Research Credit Permanent,

Additional Tax Credits for Investment in Qualified Property Used in Qualifying Advanced Energy Manufacturing Project, and a Tax Credit for Energy Efficient Commercial Building Property Expenditures in Lieu of Existing Tax Deduction.

If Obama's previous behavior is any indication of who gets this dollar for dollar tax reduction (read as refunds), it will be Obama supporters who are in the green (read as not a chance of making any profit if not subsidized by the government) industry. Don't you just love it when government decides who will be the winners and losers instead of the free market?

Regional growth is not overlooked. More tax credits and expansion of the welfare state. New York City with all those electoral votes is singled out to get big bag of cash to restructure it transportation infrastructure.

The last revenue provision — "Revenue Changes and Loophole Closers" — is an exercise in class warfare under the guise of "Reform Treatment of Financial Institutions and Products." There is nothing reforming about this.

Have you ever heard of a financial crisis responsibility fee? I can tell you that it doesn't apply to Fannie, Freddie, or FHA. Didn't you know that the financial crises were not caused by government, but by Wall Street and all its greedy investors? This is pure Obama and his view of capitalism.

What is Obama's economic policy? Does he believe in free-market capitalism or a government welfare state? Think hard because your financial survival depends on making the right decision.

Looking at Obama's Revenue Proposals for 2012 reminds me an old fashioned horror story. But this is real life. Capital is the life-blood of capitalism. Draining this life-blood out of the productive sector of the American economy, and giving it to the voting masses of the welfare state, is a true horror story for investors.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Kleinfeld
Remember when Dracula sinks his fangs in the victim's throat and drains the blood?Well, that is effectively the economic scenario that President Barack Obama proposes for 2012. If he gets his way, the federal government will drain the country of investment capital to fuel...
denis,klenfeld,Obama,Tax,Plans,Horror,Investors
635
2011-23-20
Monday, 20 Jun 2011 08:23 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved