Comments on: Obama has a plan to slow down the economic growth engine of US http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/ Commentary on investing and events with distinct value tilt Thu, 28 Aug 2008 09:06:15 +0000 http://wordpress.org/?v=2.3.1 By: fallout11 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-168 fallout11 Fri, 11 Jul 2008 17:37:01 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-168 A flat tax is regressive in the extreme (and well documented as such). Likewise, if capital gains taxes represent partial double taxation, so do sales and value added taxes (VAT), since the retailer or manufacturer paid taxes on the original purchase/raw materials. Nothing new here. Somehow it has been forgotten that the vaunted "US Economy" is not driven by mergers and acquisitions, shareholder value, quarterly profits, capital gains, or end of year bonuses for Hamptons residents. Rather, it is driven by average Joe Schmucks working 40 hours a week and purchasing everyday pedestrian goods and services, such as Big Macs and gas for the car (>78%). A flat tax is regressive in the extreme (and well documented as such).
Likewise, if capital gains taxes represent partial double taxation, so do sales and value added taxes (VAT), since the retailer or manufacturer paid taxes on the original purchase/raw materials. Nothing new here.
Somehow it has been forgotten that the vaunted “US Economy” is not driven by mergers and acquisitions, shareholder value, quarterly profits, capital gains, or end of year bonuses for Hamptons residents. Rather, it is driven by average Joe Schmucks working 40 hours a week and purchasing everyday pedestrian goods and services, such as Big Macs and gas for the car (>78%).

]]> By: If Only it was So Easy http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-164 If Only it was So Easy Sat, 31 May 2008 22:03:29 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-164 [...] Arohan’s Investing Life: “Senator Obama is willing to increase the Capital Gains tax rate to 25% range (but definitely not more than 28% according to him). Ostensibly the higher tax revenue will go towards funding more government social programs.” [...] […] Arohan’s Investing Life: “Senator Obama is willing to increase the Capital Gains tax rate to 25% range (but definitely not more than 28% according to him). Ostensibly the higher tax revenue will go towards funding more government social programs.” […]

]]> By: Michael http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-138 Michael Thu, 03 Apr 2008 03:23:24 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-138 I agree that raising taxes, especially on capital gains and dividends would definitely hurt the economy. I think he and Clinton are talking about NAFTA to appeal to middle America who fears shipping of jobs overseas. That doesn't seem as likely. I do like the fact that Obama could start us on a path toward a sustainable energy policy. The ethanol plan is not going to work for us long term. Obama could also help the U.S. economy in the near term by investing in more infrastructure (roads and bridges). Lots of good points here! <em>Michael's last blog post..<a href='http://briskycapital.blogspot.com/2008/04/financial-led-rally.html' rel="nofollow">Financial-Led Rally</a></em> I agree that raising taxes, especially on capital gains and dividends would definitely hurt the economy. I think he and Clinton are talking about NAFTA to appeal to middle America who fears shipping of jobs overseas. That doesn’t seem as likely. I do like the fact that Obama could start us on a path toward a sustainable energy policy. The ethanol plan is not going to work for us long term. Obama could also help the U.S. economy in the near term by investing in more infrastructure (roads and bridges). Lots of good points here!

Michael’s last blog post..Financial-Led Rally

]]> By: Jim http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-137 Jim Wed, 02 Apr 2008 19:43:03 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-137 I've yet to see any candidate acknowledge that Social Security goes negative in 2009, their first year in office, because 2008 is the peak year for Social Security revenue. Starting next year, the surplus shrinks and Congress will have to cut spending or increase taxes every single year from here on out. http://www.washingtonpost.com/wp-dyn/content/article/2005/05/05/AR2005050501680.html I’ve yet to see any candidate acknowledge that Social Security goes negative in 2009, their first year in office, because 2008 is the peak year for Social Security revenue. Starting next year, the surplus shrinks and Congress will have to cut spending or increase taxes every single year from here on out.

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/05/AR2005050501680.html

]]> By: Arohan http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-133 Arohan Mon, 31 Mar 2008 02:05:16 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-133 @Flo, as you say, there is more to his plan than I outlined and it is even worse. You mentioned the top tax bracket could be raised. He has also indicated that he will renegotiate NAFTA and other trade agreements Let me see, the US economy is in real trouble now. The dollar is too weak and sliding every day. We desperately need oil (Canada is the largest oil supplying country to US). We are destroying our food supply by growing corn to burn in the cars... Looks like we need more trade with other countries, not less. @Flo, as you say, there is more to his plan than I outlined and it is even worse. You mentioned the top tax bracket could be raised. He has also indicated that he will renegotiate NAFTA and other trade agreements

Let me see, the US economy is in real trouble now. The dollar is too weak and sliding every day. We desperately need oil (Canada is the largest oil supplying country to US). We are destroying our food supply by growing corn to burn in the cars…

Looks like we need more trade with other countries, not less.

]]> By: Flo http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-132 Flo Sun, 30 Mar 2008 22:34:23 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-132 That is a great post. I am so tired of hearing people sallowing the Obama kool-aid and not analyzing what he's saying. I've heard estimates that the wealthiest (those who make over $100,00 in Obama's book) could be subject to a tax rate of up to 60%. This guy needs to be stopped!! That is a great post. I am so tired of hearing people sallowing the Obama kool-aid and not analyzing what he’s saying. I’ve heard estimates that the wealthiest (those who make over $100,00 in Obama’s book) could be subject to a tax rate of up to 60%. This guy needs to be stopped!!

]]> By: Arohan http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-128 Arohan Fri, 28 Mar 2008 15:21:08 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-128 @FFB, I would really hope that the US tax system is simplified and we start taxing consumption (flat rate; maybe a higher rate exception for sin consumables like tobacco, alcohol, gambling, etc) instead of income. This will close all the income tax loopholes, potentially increasing the tax revenues for the government, rich and/or heavy spenders will pay more in taxes than poor and/or financially responsible and every one will have an incentive to save more and redirect their dollars to savings and wealth building/business building activities. Added advantage of course is no tax returns to file for individuals AND you automatically subject the dollars floating around in the underground economy (unreported tips, informal employment, drug/stolen money, etc) to taxes as well @FFB, I would really hope that the US tax system is simplified and we start taxing consumption (flat rate; maybe a higher rate exception for sin consumables like tobacco, alcohol, gambling, etc) instead of income. This will close all the income tax loopholes, potentially increasing the tax revenues for the government, rich and/or heavy spenders will pay more in taxes than poor and/or financially responsible and every one will have an incentive to save more and redirect their dollars to savings and wealth building/business building activities. Added advantage of course is no tax returns to file for individuals AND you automatically subject the dollars floating around in the underground economy (unreported tips, informal employment, drug/stolen money, etc) to taxes as well

]]> By: FFB http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-127 FFB Fri, 28 Mar 2008 13:37:23 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-127 It seems that over and over we're told that it's better to spend rather than save or invest. The gov't needs to find ways to encourage people to take control of their finances. On the other hand, money has to come from somewhere. Hopefully somone can come up with a better balance than what we already have. <em>FFB's last blog post..<a href='http://feeds.feedburner.com/~r/FreeFromBroke/~3/259148616/five-gifts-for-kids-that-keep-giving.html' rel="nofollow">Five Gifts For Kids That Keep Giving</a></em> It seems that over and over we’re told that it’s better to spend rather than save or invest. The gov’t needs to find ways to encourage people to take control of their finances. On the other hand, money has to come from somewhere. Hopefully somone can come up with a better balance than what we already have.

FFB’s last blog post..Five Gifts For Kids That Keep Giving

]]> By: Bad Debt » Blog Archive » Obama has a plan to slow down the economic growth engine of US http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-124 Bad Debt » Blog Archive » Obama has a plan to slow down the economic growth engine of US Thu, 27 Mar 2008 19:35:53 +0000 http://www.arohanvalue.com/2008/03/27/obama-has-a-plan-to-slow-down-the-economic-growth-engine-of-us/#comment-124 [...] Read the rest of this great post here [...] […] Read the rest of this great post here […]

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