Here is a snippet from the full article here: <a href="http://news.yahoo.com/s/bloomberg/20080313/pl_bloomberg/are4y0wpjqxu">http://news.yahoo.com/s/bloomberg/20080313/pl_bloomberg/are4y0wpjqxu</a> After reading this I don't think I want either one of them in office. -------------------------------------------------- Both candidates would allow President George W. Bush's tax cuts to expire for workers in the top two tax brackets and set the estate-tax rate at 45 percent with a $7 million exemption. Obama wants tax rates on capital gains and dividends to rise from the current 15 percent rate to perhaps as high as 28 percent, the rate under former President Ronald Reagan. Clinton spokesman Brian Deese said the New York senator would also raise the rate on investment income, though she hasn't provided details. The centerpiece of Obama's tax plan is a $1,000 tax cut for workers that would cost more than $80 billion annually and effectively eliminate all taxes for about 10 million low-income Americans. .................. The Illinois senator would also offset the cost of his cuts by eliminating ``corporate loopholes,'' including one that allows executives of hedge funds and private-equity firms to pay a 15 percent capital-gains rate on most of their income rather than the 35 percent regular income-tax rate, and by cracking down on overseas tax havens. --------------------------------------------------
Yeah, so for successful futures traders the change will be going from 60% at 15% with the balance at the current highest bracket (marginal income of course), to 60% at 28% with the balance at the old top rates. I don't know about other traders, but that is a huge tax increase, and it will take away the incentive to trade long hours for more money. If ya live in a high tax state like Cal or NY, you'll be giving something like 50% of your marginal income to the Gov to spend as they wish. Lovely. May be time to open an overseas brokerage acct and try to hide some income! That's the type of behavior that dramatically higher taxes promote.
Just did the math. The increase in marginal taxes paid at the highest level, federal only, comes to a 43% increase. This is with the Obama plan. I'm not so sure he would be able to get this through though, even with the Dem congress. That is quite a hike.
I was thinking the same thing until I read the last few words of the last paragraph that I quoted above: "...and by cracking down on overseas tax havens."
Oh, say it ain't so. You're going to stop working long hours... err.. trading futures contracts? The US economy will never be the same. These dangerous, distortionary tax proposals need to be stopped, or more hard working leeches like ourselves might be forced into a life of productivity. Martin
Lube up, grab yer ankles and try to relax, cuz it's gonna hurt. The only thing going up faster than taxes over the next 4+ years is government spending - no matter who wins the Whitehouse.
You can count on this tax plan or something even worse being passed by a democrat congress no matter who is president. That is why it is imperative to get McCain on record promising to veto it. He is such a backstabbing prick, it wouldn't surprise me at all if he signed on to a democrat tax increase, "for the children" of course. That said, the "carried interest" scam that lets hedge fund managers pretend their management fees are cap gains is an outrage and should be repealed.
It's a cycle of Repubes creating deficits and Demoboobs raising taxes, while both pass all the pork, big government plans possible. Repubes attacking our privacy, freedom and attacking the constitution while the Demoboobs raising taxes and passing every social program that comes along. Pick your poison folks we lose either way.
Like any gov't program to fix a supposed problem, the legislative shotgun will send shot all over the place and kill all kinds of innocent bystanders.