With the market meltdown continuing (who wants to look at their account anymore?) our president elect is meeting with his new financial transition team, replete with many famous names. What will they tell Obama about his plans to raise the capital gains tax? My guess: some polite version of “You’re nuts, buddy!” Of all the eyerollers from the recent campaign from all the candidates, perhaps the biggest was Obama’s response to Charlie Gibson’s question about why Barack wanted to raise capital gains when it has been shown that to do so would actually decrease government revenues. Obama answered with his goofy version of “fairness,” as if he had never heard of the “Laffer Curve” [Maybe he hadn’t.-ed.] or that some 100,000,000 Americans were invested in stock.
Anyway, times have changed and I have a prediction: in the very near future, perhaps as soon as Friday, Barack Obama will retreat from any capital gains increase for the foreseeable future.