Panic seems to be setting in among some Democrats as the economy continues to falter. Important political leaders, such as Majority Leader Stenny Hoyer (D-MD), and economic commentators, such as Laura D’Andrea Tyson, unofficial economic advisor the President, are calling for yet another stimulus bill. Already we have had two stimulus bills, totaling almost a trillion dollars in the last eighteen months. Both were ineffective. House Democrats especially are worried they will be held responsible in the 2010 election for the failure of the recent stimulus bill enacted during the …
According to the Washington Post, President Obama plans to create a new health care trust fund that will cost $634 billion over ten years. The money for this fund will be generated by a massive tax increase on those earning over $250,000 in income. The Administration estimates that a total of $318 billion will be generated by this tax increase. According to the President’s Budget proposal, the plan will raise revenue by limiting the tax rate for itemized deductions to twenty-eight percent for tax filers over $250K. This tax increase …
In an article in the New York Sun, I praised Barack Obama’s new tax plan as a great step in the right direction. This is true, but it is also a case of one step forward after two steps backward. Earlier, there were indications that Obama might increase capital gains and dividend taxes to 28%, almost double the current level of 15%. Obama’s economic team announced that he would make the new top tax rate at 20% for capital gains, and as important, keep the tax rate for qualified dividends …
