President Obama said Tuesday that now is a good time for investors to buy stocks if they focus on the big picture.
Mr. President, if you want to encourage investors to purchase stocks, get rid of capital gains. In fact, remove the financial tax barriers to investing. I’m not sure how you can encourage investors to take their money and buy stocks to prop up companies in an environment whereÂ successÂ isÂ penalized. You’re about to raise taxes on the 5% of people who already pay 45% of the taxes, and who are the ones who can directly invest and drive the economy. Whether you like it or not, its people with money who are the ones that can spend it.
I myself am not spending, and we here have a good capital reserve. We’re not spendingÂ becauseÂ of uncertainty. Uncertainty in the sense that I expect things to get worse, or drag on for a long time because of the stimulus spending bill. The recently landmark spending bill really has nothing to do with jump-starting the economy, but is a collection if ideas that has finally found an excuse and opportunity to be implemented. What we wanted in a stimulus package was something that would actually stimulate the economy today. A good litmus test for the package would have been: anything that does not directly provide a positive impact in improvingÂ theÂ economy (jobs, spending, etc.) within five months cannot be in the stimulus bill. Those would have to go through the normal debate process for aÂ spendingÂ bill.