Obama Vs Romney, What This Election Means For Investors, Companies do not pay taxes consumers do, Obama taxing and spending has ruined economy
“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama
“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. His heart sank as he thought of the enormous power arrayed against him, the ease with which any Party intellectual would overthrow him in debate, the subtle arguments which he would not be able to understand, much less answer. And yet he was in the right! They were wrong and he was right. The obvious, the silly, and the true had got to be defended. Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:
Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″
Here is your assignment:
For all the clueless, Obot, left wing, liberal friends in your sphere of influence.
Explain to them simply that companies, corporations, do not pay taxes. Consumers do.
Explain to them that the profit margin for oil companies is one of the lowest and not guaranteed.
Ask them if they drive a car.
Then ask them if they want to continue driving and eat. Remind them that high gas prices affect the price of many goods and services.
Intelligent people want the oil companies to succeed and make a profit.
From Forbes August 22, 2012.
“Obama Vs. Romney: What This Election Means For Investors”
“Campaign season is in full swing, and by tapping Wisconsin Congressman Paul Ryan as his running mate, Republican candidate Mitt Romney has made clear that his campaign will try to hit President Obama where he appears weakest: on the economy and the need for drastic fiscal reform.
For voters, the tepid recovery and high unemployment rate will be points of focus in the two months and change before Election Day Nov. 6, but for investors of every stripe – from those managing retirement portfolios to amateur stockpickers – there are plenty of differences between the candidates that are worth diving into.
That was what struck Tim Steffen, director of financial planning in Robert W. Baird’s wealth management business, and it’s why he put together a handy guide explaining where each candidate stands on issues ranging from income taxes and health care to just how big a cut Uncle Sam will take out of dividends and capital gains.
The latter points are critical for investors, and Steffen explains that the dividend debate will be particularly interesting to watch. Many investors play the income game by purchasing shares of companies that deliver profits back to shareholders in the form of dividends.
President Barack Obama has proposed raising taxes on dividend income for Americans that make more than $200,000 per year ($250,000 for couples), and keeping the current rates steady (0% on qualified dividends and 15% on carried interest) for those below that threshold.
Republican challenger Mitt Romney would maintain the current rates for those making more than $200,000 annually, and completely eliminate taxes on capital gains, dividends and interest income for any taxpayer with less than that in adjusted gross income.
“Dividends are a big [issue], both on the tax rates and what will happen to companies’ willingness to pay,” Steffen says. If the tax rate changes, some worry fewer companies will follow the lead of those like Apple, which initiated a quarterly dividend this year, or Cisco Systems, which recently hiked its payout by 75%, opting instead to buy back shares. “It’s a concern,” Steffen adds.
He argues that Obama’s plan would increase the cost to all taxpayers on investment income, and triple dividend taxes, but notes that there are likely to be differences between what the president proposes and what ultimately gets through Congress. For instance, the proposal to treat dividends as ordinary income has met resistance in a Senate bill passed that would call to raise such rate to just 20% on higher-income taxpayers, well short of the
While tax issues in the campaign may not be at the fore yet, Steffen believes they will crystallize if no action is taken by a lame duck Congress to extend the Bush tax cuts in some form. Americans will start to see bigger withholdings taken out of their paychecks, he says. “When that happens, people start noticing.”
Corporate taxes are another battleground for Obama and Romney. The President has said that the fat profits of oil giants like Exxon Mobil and Chevron warrant the elimination of subsidies for such companies, and would attempt to lower the overall corporate rate by eliminating many deductions. Romney would seek to drop the corporate rate and cease taxing corporations on income earned overseas, which some argue would eliminate the quandary posed by foreign profits being locked up abroad.”
Capital is the engine of this economy and that is mostly money invested by small investors like the little old lady down the street depending on dividends for retirement income.
Raising taxes cripples the economy, as any lucid person has noticed and kills job growth.
Obama has stated:
“And when the price of oil goes up, prices at the pump go up, and so do these companies’ profits,”
“Meanwhile, these companies pay a lower tax rate than most other companies on their investments — partly because we’re giving them billions in tax giveaways every year.”
From Citizen Wells April 3, 2012.
“Let’s begin with profits.
Combined, US oil companies are huge and employ millions of employees. Of course their profits will be large numbers.
Also, we want them to make a profit so that they can keep the gasoline and other petroleum products flowing and people working. If they fail, so does our economy.
And how big are the oil company profits?
Net profit margins:
Oil & Gas Refining & Marketing 3.00 %
Oil & Gas Pipelines 6.00 %
Compare these profit margins to other industries.
What about taxes?
First, the corporate tax rate in the US is near or at the top in the world.
US oil companies pay enormous amounts of taxes. How does this compare to one of Obama’s pay to play buddies GE? Check this out for yourself.
Here is the really important point about raising taxes on oil companies and other companies.
Companies (corporations, LLC’s, partnerships, sole proprietors) do not paytaxes!
Consumers pay for the tax increases.
Taxes are part of the cost of doing business.
A tax increase to a company results in some combination of the following:
Product and service price increases.
Employee and hours cutbacks.
Does any of this sound familiar?
The Obama administration has been responsible for rising gas prices and they are now trying to raise them more.
Of course this has impacted food prices and jobs.