Re: Oil hits $118/barrel

On Apr 24, 10:27 am, freeway...@xxxxxxxxxxxxx wrote:

For what it's worth, Obama is also the genius who wants to raise
(nearly double) Capital Gains taxes because a few Hedge Fund managers
make Billions of dollars. That's real smart, lets raise capital gains
on 100 million+ investors to penalize a hundred or so people. You
think the economy is bad now? pray he doesn't get elected.
Sorry for the brief OT rant.

I must respond to that. One problem with the low capital gains tax is
that people of modest means or the elderly, who can only put their
savings in bank CDs (don't have enough money or time to risk stock),
must pay full taxes yearly on the interest, even if the CD is multi-
year and isn't touched. People earning money from stock appreciation
don't have to pay any tax until the stock is hold, and then pay at a
lower rate. So, they get the advantage of deferring their tax
obligation and a lower rate to boot. (In addition, in the long run
stocks do better than bank CDs but a small saver can't afford the risk
since a decline would wipe out everything he has.)



The problem is that the people running for president, which are
supposed to be the best America has to offer (that went out the window
a long time ago) have not presented any tangible solutions other than
say the phrase "we need to find other sources" and to slap Big Oil on
the wrist in the form of higher taxes, which is designed to make most
of the general, wealth envious public, happy.

Unfortunately, in recent years US wealth seems to have become more
concentrated in fewer hands. The wage ratio from the to the top has
significantly increased. Many working people have seen their total
compensation flat or even reduced. Lots of people who had full
benefits and job security were outsourced and became strictly hourly
laborers with zero benefits. It used to be when a company laid people
off it was a sign of trouble and the stock fell. Today layoffs are
deemed great and stock goes up.


The fact is that gasoline is a basic commodity everyone needs. When
the price jumps as it has, it hurts working people
.

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