The 401k Election

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The best part about this election is that people like Pat of IL are being discredited and marginalized.
I'm sick of the argument that unless we immediately give rich people whatever they want (lower income tax or flat tax, no estate tax, no cap gains tax, no business tax) that they will immediately withdraw all their money and cut everyone's jobs.
I love how Pat links hard working people with those who are able to save and invest. Most hard working people in this country don't make enough to save money and even fewer dollars to invest with. It's the Paris Hilton's of the world that let their money make money while they party it up, not the average American.
Pat of IL - You are the reason why I hate the Republican party.

Someone Who Hates Pat in IL of WI 2:21PM October 27, 2008

That was funny! They'd probably use thier palm pilots. I'm a business owner myself and I'm behind your post 100%. Why am I even reading this blog in the first place? Watching all the hype on the news the last two days so decided to google and came upon this :-

of SD 10:29PM September 18, 2008

Apparently some of us didn't really read the article. What I read is: "Even though only wealthier Americans would face higher cap gains taxes, the higher tax rates could be a drag on the broad market by decreasing the after-tax returns of investments and thus the value of everyone's investments". Those of you that do not work for a large or small company that pays taxes and those of you that do not purchase anything from any company that pays taxes have nothing to fear from the socialist re-distribution of wealth proposed by Obama.

Irish Mike of CA 6:50PM September 04, 2008

The first post is so right! It is up to the middle class and the poor to spend their money rather than to the super rich to buy even more homes they can't even count!So,Norquist is an economic dunce with wing-nut nostrums.
I hope Obama can get Congress to raise Norquist's and Bill O'Reilly's taxes. Let them bray even more!
Intelligent people llisten to Paul Krugman.

Morgan-LynnGriggs Lamberth [skeptic griggsy] of GA 4:27PM September 04, 2008

"I'm Glad I'm a Republican"

Rob, from Iowa of 3:15PM September 03, 2008

gradioc, an increase in the Capital Gains Tax will have an adverse effect on not just the stock market. A higher capital gain tax can affect real estate, insurance gains, etc.
I will agree that a raise in interest rates would do some good in instilling more confidence in the dollar, but it's a balancing act because we also need to encourage some businesses to look into borrowing to increase investment. Also, oil is falling which is a good indicator that the dollar is strengthening.

Chris of AZ 12:04AM September 03, 2008

<P>I don't disagree that an increase in the Capital Gains Tax would cause a brief drop in the stock market. Any big news affects the market. But I'm curious what more lucrative options you envision with interest rates where they are and real estate reeling. The option of cashing out and stuffing millions under the mattress with inflation rearing its ugly head seems pretty stupid, and the Fed is so scared of affecting the market adversely that interest rates are likely to remain lower than conditions actually call for.
<P> The money will come back to the stock market because that's where the profit is. At least for now.
<P>Sooner or later, though, it will become obvious that we are riding a bubble. Stock prices are being inflated by every mill worker in America lining up every Friday to buy their $20 worth of a mutual fund through the 401-K. As the baby boomers age out and decide to hide their money that inflationary pressure will drop and the bubble will pop. It will go south and go south in a hurry. The trick is to know when. I hope I've got my money under the mattress when it happens, but right now I'm riding the bubble.

gradioc of NC 7:20PM September 02, 2008

LOTS of people invest outside of 401K plans...As soon as it is perceived that capital gains will go up, stock prices will go down as people and institutions move money to more lucrative options, or just put their funds into cash now to avoid taxes later. This will adversely affect pension plans, 401K plans...you name it! Simple freaking economics, proven time and time again.
And a 'drag on income' means less money going into the market, which results in lower stock prices too...Thanks for proving Grover's argument!

Chris of MD 1:32PM September 02, 2008

This country was formed by persons who did not want a government telling them what to do. They wanted freedom of religion and speech. The straw that broke the camels back was taxes that were collected and spent elsewhere, much like the giant social welfare state the left keeps trying. We need to go back to basics. You want it, you EARN it. Taxes should be reduced to what pays for things that benefit ALL citizens. Things like national defense, roads etc. Lets junk the rest. Lastly, set the tax policies so they are fair to all. No more special breaks for the politically connected (both the left & right). Politicians of both sides need to do what is best for the vast number of ordinary Americans, not their pet special interests.

Richard of MA 1:20PM September 02, 2008

Just keep attacking businesses-the source of jobs and enourmous tax revenue-and those that work hard and actualy save and invest. Liberals (like Obama's father) will not be happy until the tax rate is 100% and the economy is destroyed. What will nutjob liberal bloggers do when there's no power for their computers?

Pat of IL 12:56PM September 02, 2008