Obama cutting the capital gains tax?

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I’m not exactly sure what to make of this, but it certainly caught my attention. In a speech at Hudson Valley Community College earlier this week, President Obama actually proposed eliminating the capital gains tax for startup businesses. The Washington Post published the complete text of the speech at:

http://www.washingtonpost.com/wp-dyn/content/article/2009/09/21/AR2009092101617.html

Before you get too excited, there were some Big Brother solutions mixed in as well, and a silent assumption that private firms need government assistance to grow the economy. Nonetheless, I am fascinated with Obama’s recognition of the obvious–that capital flows where potential returns are greater. In other words, wealthy Americans are more likely to help grow the economy and create jobs when Washington CUTS the tax burden. If this is true, then why did Obama campaign on an INCREASE in the capital gains tax and an INCREASE in the income tax on wealthier Americans–those most likely to invest in startup businesses?

Maybe Obama just got a new speechwriter. Or PERHAPS this signals a slight shift away from the class warfare theme of his incessant campaign and toward economic reality. Demonizing the rich is good left wing fodder, but it doesn’t grow the economy. One speech doesn’t count for much, so we’ll see if this proposal goes anywhere.

3 Comments

3 Comments

  1. Q  •  Sep 24, 2009 @6:27 PM

    Where did this come from? Maybe he actually understands something about economic growth. This can’t be true. It must be a mirage.

  2. jeff  •  Sep 24, 2009 @8:07 PM

    I dont pay too much attention to what he says as he is basically a pathological liar…..

    been a member of Rev. Wright’s church for 20 years? – uh, uh who? what?

    been a close associate of Bill Ayers? – uh, uh, no havent seen him much at all…
    started your campaign for state in Ayers’ house? uh, uh, where’d you get an idea like that…

    now it looks like Ayers in fact ghost-wrote obama’s book….what a liar and a crook…

  3. G-man  •  Sep 25, 2009 @6:30 AM

    I don’t trust him either, but the democrats lose big if the economy is in the tank next year. Even FDR backed off the government control a little when World War II started. He couldn’t afford to harass his manufacturing base.