Why is Obama willing to put the tax hike to the rich on hold?

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fifty50

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To me this doesn't make economic sense. It seems that the economy would be better off if the tax hike took place as a transfer of wealth to the poor who certainly would be forced to spend it. In other words, the government would raise taxes on the rich and give a larger rebate to the poor. It would simply transfer wealth.

I stand to inherit from a rich relative at some point and even I think we should get rid of the inheritance tax break sooner than later. It makes sense to ensure that some poor child gets medical care rather than this inheritance sit in some bank.

Wouldn't spending money boost the economy and aren't the poor more likely to spend money?
 
No. Even Obama knows that taxing the rich slows the economy. That's right. Even Obama knows that trickle down economics works.

He just doesn't tell you because he knows that you won't like him anymore.
 
You make no sense. Taxing rich people doesn't help anyone. Smaller government would make much more sense then taxing more. The rich people of this county are the ones who make the economy work and taxing them more will only slow the economy down
 
Now that President elect Obama is privy to inside conditions of our country's economic plight; Obama transitional team understands the full corporation of the Republicans and Democrats working together in unity. The Capitol Gains Tax is placed on hold or delayed, in essence to work on more pressing issues as our weekly increasing unemployment rate, evolving into lost wages, home foreclosures, and demised retail sales. The Capitol Gain's Tax and rollback of taxes for the wealthy isn't forgotten, simply placed on the back-burner, while other more pressing issues have to be dealt with expeditiously.
 
Some believe in trickle down economics and some don't. Many argue that by taxing the rich, you actually hurt the economy because those individuals are less likely to invest there capital resources back into the economy. This in theory would creates more businesses and thus more jobs. I totally agree with you that the poor countries of the world and people living in poverty need the money for basic needs but its not that simple. If it were, we wouldn't be talking about it right now. Capitalism is good but it has its limitations and people fail to understand basic economics. Instead they blame those in charge(cough...cough...congressional hearings). My personal belief is that Obama is refraining from talking about the tax hikes on the rich because he knows that our financial markets are in a shit load of trouble and if you tell investors that were gonna tax your capital gains, no body's going to buy and we go on a long ride down. I know it sounds bad, but its capitalism. We reward people for there own success and punish people for there misfortunes.

I think we need to cut the crap and help people pay off there mortgages. Bailouts are not the solution. Recessions are like death, we all gotta go through it. Let the free markets do there thing. A consolidated industry is much better than a unconsolidated industry with garbage ass companies. If we believe in capitalism so much, let um fail, let the strongest survive. It creates efficiency.

Oh and by the way, we got into this mess because of excessive risk taking and spending. Stimulating the economy by spending isn't the solution, restructuring our financial system is.
 
This is proof that even he knows this would hurt our weak economy We must wait for it to get strong again before we weaken it Get It
Ha when the rubber hits the road we well see if you can drive not just look good behind the wheel
He hasn't even taken office......this is going to be fun......We don't have to do a thing just sit back and throw stones....lets talk of prop 8 O K.....He lied rebate died......Yes we can break our word Yes we can....It's as if all the anger has left me
 
Do you think when you hand out free money in the form of a one time 'rebate' it artificially inflates the economy?

If poor people want more money they should avoid credit cards & improve their ability to earn money and increase their savings.
 
Obama is going back on all his promises to us. You can get used to money being throwed about over the next four years. The new president isn't experienced and will throw money at this countries problems rather than finding long term solutions.

Obama could change the way the rich pay social security. The rich only have to pay so much a year on their income and they they can stop paying social security. The poor pay every paycheck all year long.
Obamas health care plan is taking from the old and disabled. I know I am disable and next year half my social security check will be gone because of his plans. It's a done deal. The insurance companies already know and already jacked up my cost. Obama doesn't' support subsidizing medicare health care plans. How is that for transferring the wealth. He's going to lift the ban on us funding overseas abortions but god forbid he help the elderly and disabled in this country

Poor people save money? Hello...if they could do that then they wouldn't be poor. As far as the credit cards go, companies like citigroup pray on the poor, give them credit cards, raise the limits continuously, jack their interest rates up so high that people can't pay at all. They loan shark to people who are in a difficult spot in life and have no where else to turn
 
Because he is now elected and it is time to start breaking promises. Oh did I mention that he is rich and was elected by rich people.
 
How very socialist of you. Even though you claim to expect an inheritence in the future, your actions may be very different when it is actually in your hands. While there is still "old money" wealthy, most people that are in the lower middle class and the poor think that upper middle class are rich. They (we?) work very hard for what we have and intend to ue it to the benefit of our heirs, not the poor who generally seem unwilling to help themselves.
 
Even more questionable is he is still planning on giving the lower economic classes a tax break. Not that they were paying all that much compared to other levels of taxable income, but it is very significant amount. Where is he going to get the money to do this with while we are borrowing tons of cahs? Are we just printing dollars like crazy? Borrowing form our "dear friends in China?"

If we print too many dollarsthen we could run into inflation (Germany did that after WWI to pay off the debt the winners imposed on it and created hyper-inflation) unless the Fed pulls it back out of the economy by making the banks deposit more cash into the Fed but that cold be a rough go.
Whatever, it's going to be interersting.
 
Personally, rather than tax people at the 250,000 level, I say tax people at the 250,000,000 million level. Not talking corporations either. The U.S. has more billionaires than any other country in the world, take everything they have greater than 1 billion dollars in non corporate assets. That would probably funnel billions back into the economy. No one needs that kind of money in their back pocket and they don't need big mansions in the hamptons. As for the poor, I suggest income supplements from this tax. That would create massive spending on the average consumer level. This would eventually encourage more coroporate investment to attract these new dollars. Sorry billionaires, but it is your time to cough up. Quit depending on the rest of us to save the economy while u sit idle.
 
He's put it on "hold" because the election is over, he won, and now there's no longer any need to go on spewing lies and empty promises.
 
I'm not sure if that's true. I don't believe he ever stated that. If it were though, it would be because a lot of businesses are failing right now and it might be a good idea to not tax them more at this time. That doesn't mean I think they should never be taxed more, I do. It just might not be a good idea right now. Let's wait until January though and see where the economy is at then.
 
I think when you receive your inheritance from your rich relative, you should give it all to the government to help the poor.

I think you should also give your entire paycheck to the government seeing that the government is more competent at spending your money than you are.

The poor are more likely to spend your money and boost the economy, right?

Transferring wealth is a Marxist-Socialist ideology, you're living in the wrong country. Try Russia.
 
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