Wednesday, March 18, 2009

Obama's $1T in New Taxes

Higher taxes for affluent Americans would not come until 2011 once we are safely into recovery, Geithner said
As forecast, but later than anticipated, President Obama is promising to hike capital gains rates above retained IRA and 401K tax benefits, starting in 2011. The stay of execution gives anyone who is still profitable (more than $250K in income + total book gains) until end 2010 to liquidate every taxable asset they own, including all stocks, IRAs, 401Ks, commodities, and real estate, to avoid paying a net penalty.

The good news is that Obama has already wiped out cap gains for 90% of Americans, with the threat alone.

The bad news is that the top 10% own most of the wealth, and $1T won't even cover this year's deficit, let alone the $10T in new obligations accrued over the past several months.

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