"Charles C." wrote in message
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wrote in message
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On Wed, 7 Jul 2010 22:56:03 -0700, "nom=de=plume"
wrote:

Only an across the board 4-5% tax hike. It is more if you are married
and a lot more if you actually have investments. The predictions are
that it will cause a pretty big sell off of stocks in 4q10.
That will be tough on your 401k. If this little rally holds and we get
10500, I would migrate your 401k into the "safe" fund (government
paper) until this all shakes out. I really believe the big money
people are going to run these stocks up to get profits out at the
lower rates. Don't be holding the bag when they start cashing in.


Completely untrue.


Which part?
10%, 15%, 25%, 28%, 33% and 35% will be replaced by five new brackets
with the higher rates of 15%, 28%, 31%, 36% and 39.6%.
sure sounds like a 4-5% increase to me when you add the 30% reduction
to the married couple's standard deduction and the increases in
capital gains and dividends,

If you don't think today is a temporary rally or that stocks won't see
a big sell off right before the taxes go up on the gains, we will just
see won't we?
I know where I am betting my money.
I bet stocks will be a bargain in 1q11 and I bet the big money people
rig themselves a rally in 4q10 but it will be a short one.
Obama won't mind, because even at the lower CG rate, the government
will still get a tax windfall in 2010 and in 2011 they have the tax
hike.
I do think the government needs the money but I am not sure it helps
the recession that just does not seem to be going away.

I think the current administration is going to do some re-thinking on
allowing all the Bush tax cuts to expire. Minimal or not, it still
affects all taxpayers, big and small. With mid-term elections looming, an
across the board tax hike is not going to sit well with voters once people
realize it's not just an increase on the wealthy only ... as hyped and
promised.

CC

You're probably right, but the tax cut needs to go away at some point. It
doesn't do anything for the over all economy.