Eagle Daily Investor

How Obama’s Attack on Investors Could Affect You

U.S. President Barack Obama

A major TV network asked me last week to comment on the “growing inequality issue between the rich and the middle class.” I said Americans are more concerned about other issues, such as jobs and ObamaCare, but the reporter insisted that inequality was THE issue of the day.

President Obama is making inequality #1 issue in this year’s midterm elections, which means hold on to your pocketbook!

Obama has already signed into law a sharp tax increase on investors: short-term capital gains rates are going up to 39.6%, long-term rates from 15% to 20%, plus an additional 3.8% tax on capital gains to pay for ObamaCare.

We fought long and hard for tax relief for investors, and it’s all disappearing fast.

President Obama’s rhetoric is often anti-business: In his autobiography, he referred to the private sector as “the enemy”… in his speech on inequality, he insisted that America is in danger of becoming a nation where success is reserved for a fortunate few. Note that he said economic success is “reserved,” not earned.

And he favored increasing the capital gains tax “for purposes of fairness.”

I noticed that he has not taken credit for the stock market rally in the past five years. He went out of his way to vilify Republican challenger Mitt Romney and his private equity firm Bain Capital. He apparently hates investors and risk-takers and wants no part of Wall Street (except campaign donations). He probably thinks “The Wolf of Wall Street” is standard operating procedure (it’s not).

This talk about inequality and fairness can only mean one thing: More taxes and regulations on Wall Street.

As my friend Alex Green recently wrote, “In Obama’s view, your portfolio is unfair, unjust and diminishes others. You haven’t heard the last from him on this subject.” I suggest you read Alex Green’s insightful column about Obama’s demonization of investors and apparent lack of regard for free enterprise.

During the past weekend, my wife Jo Ann and I spent some time with marketing guru Craig Huey and his wife at their Lake Arrowhead home. Craig told me that the upcoming Davos conference in Switzerland, where the likes of George Soros and Paul Krugman get together to develop new schemes to tax and regulate you, will focus on the big inequality issue. In other words, expect more attacks on you as an investor. Craig is so concerned about the direction our country is headed and its impact on your investments that he has just released this short, six-minute video on why you must attend this anti-Davos summit. I urge you to watch it.

We now have posted the full schedule for the Global Financial Summit in the Bahamas, Feb. 5-7. Check out our incredible lineup of speakers below.

You Blew It! Gov. Cuomo Tells Conservatives to Leave State

“Extreme conservatives have no place in the state of New York.’’
– Gov. Andrew Cuomo

Last week, New York Governor Andrew Cuomo said on public radio that “extreme conservatives” — that is, people who are pro-life, pro-Second Amendment and pro-traditional marriage — “have no place in the state of New York, because that’s not who New Yorkers are.”

It’s a sad commentary when a governor of a state makes a large percentage — perhaps a majority — of citizens unwelcome. Is he asking most Catholics, Mormons and evangelical Christians to leave the state of New York?

I see that Sean Hannity is taking him at his word and planning to leave the great Empire State for Florida or Texas.

It’s bad enough that New York leads the nation in high state income taxes and has chased away millions of its own citizens to Florida and other states with no income tax. Plus, New York recently was rated the worst state in the union for being pro-small business (ranked #50). Is this a time to be bashing its own citizens, especially those in Northern and Western New York who are largely Republican with traditional values?

Whatever happened to a state chief executive being the governor of all citizens? Whatever happened to tolerance?

Westchester County Executive Robert Astorino said it best, “New York’s greatness comes from accepting people of differing points of view. What Andrew Cuomo has revealed by these statements is his true self, because we see just how angry and radical his views are.”

In case you missed it, I encourage you to read my e-letter column from last week about how minimum wage is not the best way to improve lives. I also invite you to comment in the space provided below.

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About Mark Skousen

Mark Skousen, Ph. D., is the editor of the monthly investment newsletter, Forecasts & Strategies, as well as three weekly trading services, Skousen High-Income Alert, Hedge Fund Trader and Fast Money Alert. He also is a professional economist, investment expert, university professor, and author of more than 25 books. He earned his Ph. D. in monetary economics at George Washington University in 1977. He currently holds the Benjamin Franklin Chair of Management at Grantham University. He has taught economics and finance at Columbia Business School, Columbia University, Barnard College, Mercy College, Rollins College and Chapman University. He also has been a consultant to IBM, Hutchinson Technology and other Fortune 500 companies.

View all posts by Mark Skousen →

  • Steve Tanton

    RE: “A major TV network asked me last week to comment on the “growing inequality issue between the rich and the middle class.” I said Americans are more concerned about other issues, such as jobs and ObamaCare, but the reporter insisted that inequality was THE issue of the day.”

    Dear Mr. Skousen,

    You should have simply told her that the closer an government/economy moves to socialism, the greater the disparity. Income redistribution to achieve capital equality leads to a very rich elite and the remainder, peasants. It is quite simple really, and while I’m preaching to the choir perhaps, you didn’t really explain it to them in simple terms for them to understand. They are indoctrinated leftists for the most part and have little education in the basics of free market economics vs. socialism.

    A little Milton Friedman here, a little Thomas Sowell there, wrapping up with Walter Williams and history can easily explain it. There will always be the rich, for they are the successful capitalists whose investments allow for growth in business and jobs, thus allowing the common man to rise up. Capitalism expands the riches; Socialism depletes it and the jobs, forcing the masses into poverty. It’s as simple as that. Note: Crony capitalism survives in corruption; our Representatives are supposed to work for us, keeping business honest, not by sleeping with them and becoming the elitists to rule over us. This whole issue is combined, power, elitism, socialism and the death of capitalism to feed the power elites. The mainstream news has become a pawn of these elitists, what with their indoctrination of ignorance. If this were not so, they would never have asked the question in the first place.

    “Every step which leads from capitalism toward planning, is necessarily a step nearer to absolutism and dictatorship.” – Ludwig von Mises

    • ConservativeJoe

      Steve Tanton, good post! Your last sentence refers to one of the great minds in economics.

      Liberals, progressives, Marxists and communists are all peas in the same socialist pod. Anyone who wants to know just why socialism is fallacious might want to acquire Ludwig von Mises book, “Socialism, An Economic And Sociological Analysis (1951). ISBN 9781169832107

      The following is a paraphrase of the last two sentences of the Conclusion Chapter of that book: Whoever prefers life to death, happiness to suffering, well being to misery must defend without compromise private ownership in the means of production.

      The product of one’s labor, (the value of the labor represented by money), is one’s property. Marx did not agree.

  • ConservativeJoe

    Since when did the “growing inequality issue between the rich and the middle class” become a burning concern among the citizens in the middle class?

    I just happen to be a member of the middle class and this issue does not keep me up late at night. What does concern me is the Marxist mentality of obama and his minions. I am bothered when the liberal elite force the passage of legislation that effectively takes dollars out of my pocket and then give them to others who are just as competent and healthy as I.

    And the rich? Who cares about how the rich earned their money? What difference does the money, that the rich managed to accumulate, have on my life?

    Here’s a scenario that might illustrate the point.
    A rich American goes to Monaco and gambles away 10 million dollars. It doesn’t make any difference if this 10 million represented all of his wealth or if he still has another 90 million in assets back in America.
    Here’s the question: how did his loss at the gambling tables in Monaco affect my life?

    I think that that rich man’s money is his to do with as he pleases. Why do the liberals want to spread the wealth? Stalin spread the wealth in Russia and the result was equal misery among the masses. The efforts of the liberals, (socialists), never make everybody rich, they always make everybody poor.

    Call me crazy, but I think that the worker who earns his money is best qualified to know how and what to spend his money on. The government has no right to tax any more money than it takes to meet its constitutional requirements. Some of those requirements are to provide for the common defense and to secure the national borders.

    Socialism, (liberalism), is toxic to liberty.

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