In Yahoo! Finance, they have a story called "Not Again! Debt Ceiling Debate Set to Make a Monstrous Return". If the Republicans set Obama up as being the one that wants to increase the debt, they will win the issue from voters.
The Dow Jones may be up today but as The Motley Fool points out, "about half of the index’s components are in the red today, with a particularly heavy anchor being thrown out by AT&T".
The reason the DJIA is above water is due to the fact that Caterpillar is up 2.7% on strong earnings and a good projection for 2012.
The SOTU did not do much to help investors.
Breakout at Yahoo! Finance had an unscientific online poll that found 74% do not think the State of the Union speech helped to increase their confidence in the financial markets.
How could it?
He was all about making the rich pay more in taxes… If he gets his way, a lot of people who only pay capital gains taxes would see their taxes increase on their investments from 15% to 30%.
- That hurts their ROI and will cause a drastic decline in investment.
- Then less capital will flow to companies.
- Loss of capital will force businesses to close.
- Business closures will results in massive layoffs.
- Massive layoffs will increase government spending in federal benefits and reduce tax revenues.
- This will lead to a debt that will grow at an even faster rate.
It is so easy for companies to move overseas these days that we don’t have to make it even easier for them by burdening them with massive taxes and regulations.
Maybe the rich are greedy. But people go into business or invest their money to turn a profit not to pay taxes.