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Wednesday, September 1, 2010

Scary prospect

This article by Jim Cramer -- who voted for Obama -- was on today:

Bubble, Bubble, Toil and Trouble
By Jim Cramer

An up day is a good day to talk about what I see the Obama administration cooking up against business. The Obama people love to cultivate the media. They do a fabulous job of it. And one thing the media despises is companies with richly paid CEOs, stockpiling money

We know now, despite protestations by Treasury Secretary Tim Geithner that the administration won't let the capital gains and dividend taxes go all the way back up, that those assurances are baseless. Tax on dividends for the middle class and upper middle class, as well as the upper class, is going to ordinary income levels, as this administration thinks that the stock market is the plaything of the rich. We know that capital gains are viewed as the scourge of the hard left -- as the only people with capital gains are wealthy people -- in this administration's heavily left orientation. But the tax that is missing is the tax on companies that don't hire. I am predicting right now, right here, that we will see a tax on those earnings not being put to work hiring. It's too juicy. The media will love it. Therefore, it will be a go. It will be so politically popular -- because the media will endorse it in the straight news coverage -- it is a wonder they haven't called for it already.

Such a tax could be pushed through in a lame-duck session if the Democrats lose in November, something that could go along with the other parts of the agenda: card check, amnesty for all and modified cap and trade, which bangs all of those companies that are heavy carbon users...

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