Duck Goes Moo!

2 Responses to “Obama Has a Beer”

1. John Rosenauer
   May 14th, 2008 at 6:58 pm

   

   I enjoyed reading your insightful comments in “ Obama has a Beer “, and I found myself in complete agreement with you. I have always enjoyed watching the political season unfold, and have been highly amused watching the impending implosion of the Democratic Party. I was also highly entertained watching the similar implosion of the Republican Party during the last election season.

   Politics in America has degenerated into the basest of spectator sports, it can most readily be likened to Professional Wrestling, and like Professional Wrestling the Political arena largely consists of madly gesticulating fools who would likely be unable to tell a reasoned argument from the hind quarters of an aardvark. An example of which came in the most recent debate between Hillary and Obama,
   (the following was a follow up to a question after both candidates pledged not to increase taxes of any kind on the middle class. Well they pledged in a round about way, but a pledge is still a pledge. Now look at how Obama attempts to wriggle out of that pledge. Hillary did roughly the same thing but this is just an example.)
   GIBSON: Senator Obama, you both have now just taken this pledge (to not raise taxes) on people under $250,000 — and 200-and-what? $250,000?
   OBAMA: Well, it depends on how you calculate it, but it would be between $200,000 and $250,000.
   “GIBSON: All right. You have, however, said you would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, “I certainly would not go above what existed under Bill Clinton,” which was 28 percent. It’s now 15 percent. That’s almost a doubling, if you went to 28 percent.
   But actually, Bill Clinton, in 1997, signed legislation that dropped the capital gains tax to 20 percent.
   OBAMA: Right.
   GIBSON: And George Bush has taken it down to 15 percent.
   OBAMA: Right.
   GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.
   So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?
   OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness.
   We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year — $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That’s not fair.
   And what I want is not oppressive taxation. I want businesses to thrive, and I want people to be rewarded for their success. But what I also want to make sure is that our tax system is fair and that we are able to finance health care for Americans who currently don’t have it and that we’re able to invest in our infrastructure and invest in our schools.
   And you can’t do that for free.
   GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.
   OBAMA: Well, that might happen, or it might not. It depends on what’s happening on Wall Street and how business is going. I think the biggest problem that we’ve got on Wall Street right now is the fact that we got have a housing crisis that this president has not been attentive to and that it took John McCain three tries before he got it right.
   And if we can stabilize that market, and we can get credit flowing again, then I think we’ll see stocks do well. And once again, I think we can generate the revenue that we need to run this government and hopefully to pay down some of this debt. “

   Clearly Obama would raise taxes on people making $250,000 or less through a capitol gains tax increase. I own stock and my income is below $200,000 at this point I would pay 15% capitol gains tax the value of that stock should I sell, if I waited until this time next year, in the unlikely event of an Obama presidency, I may be paying 20- 28% on the same sale. This is obviously a tax hike on the middle class. Only through the eyes of a politician is an increase not an increase. I know a good many secretaries and most of them fall within the 15% tax bracket with an annual taxable income below $32,000 (that’s taxable income not net), therefore; his populist argument concerning 29 billion being earned by the top 50 hedge fund managers is specious. His argument rather than centering on facts centered on fairness, do we raise taxes to be fair or to raise revenue? Historically raising capitol gains taxes has resulted in a corresponding drop in revenue, the only logical conclusion one can make is that he would be increasing the taxes to punish wise investment rather than to increase revenue. I know a great many people who have had to pay capitol gains taxes on sales of stock very few of them are wealthy. Too bad that out of a field of three we cant have at least one candidate, that can make a substantive argument. I would like to look at Clintons answer but am out of time, it is at least as evasive and specious as Obama’s.

   Sorry for rambling did this between projects at work. Have a great day.

2. Charles
   May 14th, 2008 at 7:34 pm

   

   No problem at all, John. Ramble as much as you like. You know how much I love to political debates and kerfuffles.

   Also, I just really love the word “kerfuffle”. [:coffee:][:duck:]