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Fixing 'Fiscal Cliff' Will Mean 'High, Higher' Taxes: Gross
CNBC ^
| 11/7/2012
| Jeff Cox
Posted on 11/08/2012 3:19:39 AM PST by gotribe
...Consequently, Gross said, higher dividend taxes would make those companies less attractive and thus take the stock market down 5 to 10 percent.
That's "the ultimate danger here for the stock market," he said. "Dividends are sheltered in 401(k)s, they're sheltered in pension funds. At the margins investors pay dividend tax rates. To the extent that you raise them from 15 to, say, 25 (percent), that implies in terms of equaling after tax rates another 5 to 10 percent down in terms of stock prices. We've been very spoiled for the last 10 years."
(Excerpt) Read more at cnbc.com ...
TOPICS: Business/Economy; Government; Politics/Elections
KEYWORDS: obamataxespoverty
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1932 all over again, they never learn.
1
posted on
11/08/2012 3:19:53 AM PST
by
gotribe
To: gotribe
What all this really is, the to-be-coming revelations about this calamity or that calamity, Benghazi et al, is the same thing as Obama getting up from the bed of his latest “one-night stand” and saying “By the way, you need to get yourself checked out - I gots the Herpes.”
2
posted on
11/08/2012 3:21:45 AM PST
by
Gaffer
To: gotribe
...back when they started 401k’s I remember asking people, “think about it, the government and the banks getting together to do you a favor?”.....the the secondary question,
What’s the tax rate going to be when you need to be drawing on it?
3
posted on
11/08/2012 3:25:08 AM PST
by
Doogle
((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
To: Doogle
...of course back then, would you have ever thought a big eared lying muslim Marxist would be leading the country?
4
posted on
11/08/2012 3:27:02 AM PST
by
Doogle
((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
To: gotribe
Well if they don’t do anything before 31 December, we all will have higher taxes regardless. Those damn Democrats are seriously in charge right now. All Reid has to do is block whatever the House sends over until 31 December and we are all screwed. Ugh!!!!
5
posted on
11/08/2012 3:31:18 AM PST
by
napscoordinator
(GOP Candidate 2020 - "Bloomberg 2020 - We vote for whatever crap the GOP puts in front of us.")
To: gotribe
"1932 all over again, they never learn."
Maybe they do - equal distribution of the misery, vast increase in dependency, rising support for a government that feeds you, etc. Sounds like an Obama plan.
6
posted on
11/08/2012 3:36:56 AM PST
by
Truth29
To: gotribe
I'm not so sure that I agree with Gross here. Higher dividend taxes may simply cause the stock market to revert back to its pre-2001 days when blue chip stocks that pay steady dividends lose their appeal in favor of growth stocks that pay no dividends but offer opportunities for capital appreciation.
In fact, I would even suggest that some economic growth in this country has been limited over the last 10 years simply because the tax code doesn't provide the same incentives like this that used to be in place.
These major corporations are not stupid. Change the tax code on them, and they'll simply change the way they do business to reflect the changes to their bottom line.
7
posted on
11/08/2012 3:44:36 AM PST
by
Alberta's Child
("If you touch my junk, I'm gonna have you arrested.")
To: gotribe
Watch out my fellow Americans you are about to mugged to support fools who have not learned to so much as to cook a meal. Stay safe and be prepared. They will literally end in chaos when it all runs out.
8
posted on
11/08/2012 3:48:00 AM PST
by
formosa
(consider me galt)
To: Alberta's Child
In the long-run, I agree with you. Increase divvy taxes and they will stop pouring so much money into divvies and do more buybacks. In the end, they’ll privatize and pay the lower corporate taxes that are coming. Good for them.
However, over the next couple of months, I don’t intend to sit around and watch my retirement money get a 10% haircut.
9
posted on
11/08/2012 3:54:56 AM PST
by
gotribe
(He's a mack-daddy http://www.youtube.com/watch?v=AV415yit7Zg)
To: gotribe
If I were totally convinced that the stock market is going to get a "10% haircut," I'd sell all of my stock holdings in my 401(k) and sit on the cash until the market declines by 10%, then start buying back the exact same investment instruments afterward.
Personally, I think any anticipated "fiscal cliff" scenario is simply going to incentivize companies to pay a lot of dividends out of their cash holdings between now and the end of the year.
10
posted on
11/08/2012 4:04:17 AM PST
by
Alberta's Child
("If you touch my junk, I'm gonna have you arrested.")
To: gotribe
I would also add that the U.S. is not going to get out of its fiscal mess unless future hikes are more regressive than the current tax environment. In other words, people who pay little or no taxes today are going to be expected to pay
something in the future (hence the appeal of a VAT).
How ironic is it that the election of Barack Obama may very well drive the decline of the "47%" -- simply because a lot of those people are going to soon join their "53%" counterparts as taxpaying citizens.
11
posted on
11/08/2012 4:09:15 AM PST
by
Alberta's Child
("If you touch my junk, I'm gonna have you arrested.")
To: napscoordinator
It is going to happen so get ready for it. We are ALL paying more... wait until the illegals and those that foul their own beds find out that their little paycheck just got smaller. Bring on the pain... the sooner the better... I am sorry for the Military but as for the pain... to cure cancer they almost kill you with chemicals and radiation... but they kill the cancer and you barely survive to recover... that is what is coming... ready yourselves accordingly. Me... I'm John Galt.
LLS
12
posted on
11/08/2012 4:20:08 AM PST
by
LibLieSlayer
(OUR GOVERNMENT AND PRESS ARE NO LONGER TRUSTWORTHY OR DESERVING OF RESPECT!)
To: Alberta's Child
Bret on fox last night was interviewing communist patty murray and she said that any tax deal would have to cover everyone... that all Americans will have to share in the tax burden... to be fair and to meet with marx’s approval... they must cover every working American. They are coming after everyone... wait until the obamaphone creatures find out that they owe obammy... or dey gets da slammy.
LLS
13
posted on
11/08/2012 4:25:45 AM PST
by
LibLieSlayer
(OUR GOVERNMENT AND PRESS ARE NO LONGER TRUSTWORTHY OR DESERVING OF RESPECT!)
To: napscoordinator
I am very seriously considering cashing in my 401K. Pay the high tax on early withdrawal, pay off all total debt and perhaps buy some silver or gamble it on commodities futures. Otherwise it will get raided to pay for Social Security, or taxed extremely high anyway.
And anything but to let these mooching bastards get it. At least I will have SOME benefit from it.
Too extreme?
Comment #15 Removed by Moderator
To: Alberta's Child
How ironic is it that the election of Barack Obama may very well drive the decline of the "47%" -- simply because a lot of those people are going to soon join their "53%" counterparts as taxpaying citizens. Schadenfreude :-)
To: gotribe
I don’t see where Boehner has anything to lose; he should play the game of chicken, get Fox and any other cameras which will cover him and start educating like Rush says our side needs to do:
* constitution
* what the fiscal cliff means
* taxes
* how each impacts YOU and the reality of not doing anything
Otherwise, he and congress WILL be blamed and yes, the country has proven they are stupid and gullible.
17
posted on
11/08/2012 4:45:39 AM PST
by
CincyRichieRich
(Keep your head up and keep moving forward!)
To: gotribe
Federal revenue never exceeds 20% of GDP.
Never.
We’re at 19%.
Raising taxes won’t work.
18
posted on
11/08/2012 4:52:55 AM PST
by
ctdonath2
($1 meals: http://abuckaplate.blogspot.com)
To: CincyRichieRich
Wait... is this JOHN Boehner you’re talking about?!?
*eyeroll*
19
posted on
11/08/2012 4:59:21 AM PST
by
EricT.
(The GOP's sole purpose is to serve as an ineffective alternative to the Democrat Party.)
To: Alberta's Child
There are longterm capital gains tax increases as well.
20
posted on
11/08/2012 5:13:40 AM PST
by
Chgogal
(Obama helped murder US Navy SEALs.)
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