“NEW YORK (AP) — A case of post-election nerves sent stocks lower Wednesday as investors began questioning what impact a Barack Obama presidency will have on business and the overall economy. The Dow Jones industrials fell more than 300 points and the major indexes all fell more than 3 percent.”
At 1:46 pm today, the Dow is down 286.09. This is because most people expect the capital gains tax to go up under Barack Obama. The capital gains tax is the tax investors pay on investments and in the stock market this is everyone who buys and sells stocks.
On Obama’s website, he claims he will eliminate the capital gains in investments for small businesses. As I support this, this has nothing to do with the stock market. The other mention of capital gains taxes is that he would allow people under $250,000 pay the same amount and people making above $250,000 up to 20%. Even though, this is his plan there is a large chance that the Democrat controlled Congress will want higher rates.
Investors are saying better safe than sorry. Now the other key problem here is it is going to hurt our economy. When we are in a credit crunch the problem is there isn’t enough investment. These taxes cause people to pull their money out early and not reinvest. We need that investment in our companies.
Obama should be trying to get people to invest in America, no matter where they want to invest in. Some people may not feel comfortable investing in small businesses no matter how small the capital gains taxes are. This is because small businesses are more risky than corporations who are established and diverse.
You will continue to see the stock market dive until Obama commits to supporting investment in America, everywhere.
The rest of the article on the stock market is here.