The Economy and a Barack Obama Presidency EveryJoe

Barack Obama has some new economic policies Today, of course, since the economy has been such a big deal, and since yesterday’s election can be seen as a mandate for Barack Obama and the Democrats, it’ all about how an Obama presidency is likely to affect the economy and your personal finances. Indeed, there are already calls for another stimulus package of some sort, meant to stimulate both the economy and individual financial situations. If you are interested in figuring out what might be coming, Cash Money Life has an interesting look at what some of Obama’s policies may mean, and Consumerism Commentary offers a helpful and succinct look at the highlights of CNN Money’s coverage on the subject.

The bottom line, though, is that you need to be responsible for your own personal finances. There may be some tools to help you on the way, but, ultimately, no matter who is in office, you are largely in charge of your success in terms of personal finances.

My thoughts on some of the economic policies espoused by Barack Obama

My biggest disagreement with Obama: Despite my general support for Barack Obama, I don’t agree with him on every aspect of his plans. One of the things that I disagree with is the “windfall tax” on oil profits. While I think that Big Oil should lose its special tax breaks and as a profitable company should not be receiving subsidies, I think a windfall tax is pushing it. Instead, the subsidies currently enjoyed by Big Oil should be moved to fund the development of alternative energy technology that can help us end our need for oil.

Obama wants to offer rebate checks to people hit be high energy costs from the “windfall tax.” (It’s sort of what they’ve been doing in Alaska for years and years.) Anyway, I was against the first tax rebate check, and I’m not for this rebate check either.

One of the things I like about Obama’s economic proposals: One of the things I’m okay with, in terms of Obama’s proposals is the idea of raising the capital gains and dividend tax rates. Yeah, that means I’ll be paying a little more. But it doesn’t bother me. Neither do allegations that it will stymie investment. Just as there is no evidence that tax cuts for investment gains “trickle down” to help the less wealthy, there is no evidence that higher taxes on investments stymie investment. Bottom line: The benefits of investing outweigh taxes you pay. You still have more money, and you still made more than you put in.

What about you? What are some of the things that you like and dislike about Barack Obama’s economic proposals? And, please, let’s keep this a civil discussion.

image credit: U.S. government, public domain

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http://cashmoneylife.com Patrick

I think removing subsidies is a much better solution than a windfall tax.

As part of the second stimulus plan, Obama also proposed creating work by repairing roads and schools. I would much prefer to see new jobs created instead of giving everyone a handout. New jobs will stimulate the economy more than just handing out checks.
miranda

I’m totally with you! I like the idea of infrastructure. It’s more than jobs, too. It would benefit our country as a whole and make it a more efficient place.
http://toughmoneylove.com Mr. ToughMoneyLove

“Yeah, that means I’ll be paying a little more. But it doesn’t bother me. ” If I understand your position, if you invest and harvest $1.00 in capital gain, your OK with the government taking 99 cents of it in taxes, because you still come out 1 cent ahead. If that is not correct, where do you draw the line? I don’t think your sources support your argument about taxation and investment. Corporations that pay steady dividends saw valuations increase after tax rates were lowered. Other corporations that did not pay dividends jumped on the bandwagon. That will all change if taxes on dividends go up as shareholders bail out and turn to other investments.
miranda

Yeah, I guess if you want to carry my position to the point of hyperbole, that’s what I said ;)

At any rate, my main point is that I find a tax rate on investment earnings at around 20% – 30% acceptable. But I do think personal income tax should be capped at 18% – 20%. But that’s another story completely. But I like your point about dividends, and perhaps I will change my position to disagree with raising taxes on dividends, but maintaining that I don’t mind a capital gains tax.
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http://www.holidayfastcash.com Bill Jordan

I also disagree with the windfall tax as well. In fact I don’t know if I agree with most of the tax policies. It was a difficult decision because neither senator had a great tax policy. I also know that we had to raise taxes one way or another. To pay off all of our debts including the $700 billion dollar bailout bill which was tacked onto our $10 trillion dollar deficit.
miranda

Thanks, Bill! I think you make an important point. No matter what anyone says about cutting taxes, the reality is that we need revenue from somewhere.
Gramps

Your position on windfall profits tax is interesting. Especially in light of the fact that Exon Mobile has just declared records profits for this quarter while General Motors is on the verge of bankrupcy. Tell the boy I,m sorry I didn’t get him a birthday card but something will be coming for Christmas.
miranda

Thanks for stopping by, Grandpa! I don’t think that a windfall tax is the answer. But I do think it is absolutely appalling that Exxon gets subsidies from the government, as well as rather generous tax breaks. As for GM, and the rest of the Big 3, they’ve been enjoying subsidies, tax breaks and the good life for quite some time, while letting their products and business models become obsolete. I do feel bad for all the people that will have to be laid off because of GM’s stupidity.

The Boy will be fine :) He’s too young to keep track of who’s sending him what anyway. And he still thinks you’re the coolest for taking him fishing.