Tax Hikes And The 2011 Collapse

The Wall Street Journal
Today's corporate profits reflect an income shift into 2010. These profits will tumble next year, preceded most likely by the stock market.

By ARTHUR LAFFER
People can change the volume, the location and the composition of their income, and they can do so in response to changes in government policies.

It shouldn't surprise anyone that the nine states without an income tax are growing far faster and attracting more people than are the nine states with the highest income tax rates. People and businesses change the location of income based on incentives.

John Fund of WSJ's Political Diary breaks down Tuesday's most interesting primary contests. Also, WSJ Columnist Mary Anastasia O'Grady translates the latest economic signals from Washington.

Likewise, who is gobsmacked when they are told that the two wealthiest Americans—Bill Gates and Warren Buffett—hold the bulk of their wealth in the nontaxed form of unrealized capital gains?

The composition of wealth also responds to incentives. And it's also simple enough for most people to understand that if the government taxes people who work and pays people not to work, fewer people will work. Incentives matter . . . Read More.

Skip aka Kirby - Thanks to President Barack Obama and his fellow Democrats in office, there will be many new tax increases for everyone in 2011.

The "community organizer from Chicago", while campaigning and wooing the votes of those who did not 'educate' themselves as to whom and what they were actually voting for, lied to you. In 2011 you will see that "Hope and Change" for what it really is.

The 'drive-by' media who are on the side of the leftists, told you every day, what a great president Obama would be. Well they also lied. Now we will all literally pay the price.

Let's hope by now, that many of the Obama voters have seen the light and who BO really is and what he wants to do, so we can attempt to stop some of the trashing of our country.

By voting for the right Senators and Congress members in the election this November is our only chance. If we don't stop some of this wreckage in November, we the taxpayers are in serious trouble.

"On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush's tax cuts expire on that date, meaning that the highest federal personal income tax rate will go to 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero."

"Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts." "The result will be a crash in tax receipts once the surge is past. If you thought deficits and unemployment have been bad lately, you ain't seen nothing yet."

At this point in time I don't even want to guess what other surprises Obama has in store for us. This was the man who told us no more tax increases for the middle class.

He also said he was going to tax big business. What happened even before the election? Many companies began to downsize, which is a large reason for the current unemployment rate. Yet Obama and his leftists are still blaming George W. Bush for our economic condition.