Posted on 11/16/2010 12:25:35 PM PST by Bigun
If no one knows what tax rate will be applied, or even what will be taxed (and it certainly doesn’t appear to be anyone in Congress or the president), it’s difficult for an investor to make confident investment decisions.
With the tax factor unknown, what can be said with certainty is that there is a lot of real money at risk on any investment. Clearly, tax uncertainty doesn’t seem to make up much of the analysis by those who make their living brokering investments or investment services.
(Excerpt) Read more at moneynews.com ...
Please work your magic!
Taxes need to be permanent. Obamacare need to be "killed".
That would be a really good start for sure but the answer is a new tax code that does not tax on the exact wrong end of the spectrum like the current mess we suffer does!
Since the obama tax increases tax dividends as ordinary income,many will see the rate go fro 15% to 39%. So picking or holding stocks with high dividends would not be as attractive.
The other tax, inflation will also change investing from companies that have a hard time raising prices to those that have assets in the ground that rise with inflation.
Neil Cavuto had on his show yesterday gentleman who owned a payroll service. He said that once the IRS sends out the new plan THIS WEEK, the forms are locked in, and can't be change without major headaches throughout the whole industry.
He has to advise his clients to plan for next year factoring in the new rates, which happen to be the largest tax increase in a long time. If it ain't done by Friday, it ain't getting done.
Sort of like a reverse Y2K problem, which had everyone buying everything in sight prior to 1/1/2000, which also had the additional benefit for the Dems of making Clinton's "economy" look really good before the tech bubble burst under President Bush's watch.
The Dem's have been feeding off of that trough for years.
PING to a GREAT read!
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