Posted by Tina Grazier
For those interested in the tax ramifications of either one of the tax and spend democrat candidates please read this excellent article from the CATO Institute:
Tax Delusions, by Alan Reynolds
A little tease:
Hillary Clinton and Barack Obama both propose to “turn the economy around” in a novel way – by raising tax rates on small businesses, working couples and stockholders in general, including retirees. Of course, their plans are also meant to raise revenue for their various hundreds of billions in new spending – but the move would fall flat on that front, too. ** All in all, these tax hikes add up to, at most, $47 billion a year – only 1.5 percent of federal spending and 0.3 percent of GDP. And even that assumes nobody makes the slightest effort to avoid the increased taxes. ** In reality, many two-earner families would become one-earner families; doctors would play more golf; some folks would quit working long hours and others would retire early. Top-bracket taxpayers would maximize deductions (take out a bigger mortgage, put more in the 401k) and minimize taxable income (buy municipal bonds or just spend rather than invest). Such tax avoidance alone would cut the estimated revenue in half. The tax hikes’ adverse effects on the stock market and the economy would more than eliminate the other half. ** Higher tax rates on dividends and capital gains would crash the stock market yet do absolutely nothing to cut the deficit.
Hillary and Obama have said they want to turn the economy around. They didnt say where it would go. The DUMPER might be one destination to consider.