Thursday, February 7, 2013

Taxing the Rich and the "Booming" Stock Market

There is a difference between the Wall Street investment class and mid to small businessmen. The stockmarket reflects growth of international companies, and earnings from foreign shores. The stockmarket can be high, while US unemployment and economic stagnation enduring. What many misunderstand, are the differences between the investment class managing earnings and losses inside portfoliosm,  and businessmen trying to survive under the assault of the EPA, Obamacare, new Federal Income Taxes, and dealing with noncompetive Union wages. In addition,  businessmen are paying rising State and Local taxes and headwinds of endless regulations imposed at that level. All this is a minefield of risk, and businessmen are finding negotiating it isn't worth it. So, no one is building businesses or expanding their workforce.       Even GM (Government Motors) is building vehicles in China for that market, so that means less growth in US plants and US exports.

Warren Buffet specializes in tax shelters, which is why he is all for taxing the so-called rich.    Obama's tax policy drives huge amounts of capital into Buffet's coffers. Other analysts said the stock market was also being lifted by investors moving funds out of bonds and into stocks, as a result of bond yields falling. The stock market also rose in 2007, and there was no reason for it. History repeating itself.  

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