Friday, April 18, 2008
I was listening to Neal Boortz this morning and heard something that kinda got me all riled up. Believe it or not, it wasn't Neal who get me all flustered. It was a comment by Barack Obama.
A couple nights ago the two Democratic Presidential Candidates were swapping punches in the Pennsylvania debates on TV. My man Charlie Gibson was one of the moderators, and he asked Obama a pretty darn good question. It went something like this:
Gibson: "When Bill Clinton was President, the Capital Gains Tax was at 28 percent. While he was in office, he signed legislation that reduced the tax rate to 20 percent. When he did that, the revenue generated from Capital Gains taxes increased. A couple years ago, President Bush signed a bill further reducing the tax rate to 15 percent. Again, the revenue generated for the Federal Government increased even more. If it has been proven that more revenue is generated with a lower tax rate, then why are you in favor of increasing the Capital Gains Tax?"
Obama: "I said I would look at raising the Capital Gains Tax for purposes of fairness."
Fairness. Hmm. Head scratcher, eh?
So, with the current 15 percent rate, the government pulls in more money, and taxpayers also benefit. Great deal, right??
But, Obama apparently doesn't see it that way. He says a lower rate isn't fair. Well, I am a little confused as to whom it is unfair, but in a nutshell, he wants to hammer those who make a lot of money through investments - working the stock market for a profit. Putting their money to work for themselves. Crazy.
I really don't get into politics, but this should alarm you. Obama is saying that he'd rather reduce government revenues and increase taxes just to stick it to those who have a lot of money. The thing is, it not only affects the richest of the rich, but it penalizes anyone who makes money through investments.
Further, he is comparing the Capital Gains Tax to Income Taxes. These are not the same! He says Hedge Fund Managers pay a lower tax rate than their Secretaries. But, it's not the same tax!! Plus, the revenues generated are higher than if you double the CG Tax.
OK...I need to simmer down. But, pay close attention to what's going on. I know there are pluses and minuses to all the candidates. But, you cannot take anything at face value.
Obama says he wants to reduce Income Taxes and increase Capital Gains.
What's this mean? One thing: things will NOT be fair.
BONUS: Here's a video that talks more about this - Click HERE.