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In this issue
Nov. 6, 2009
Rabbi Berel Wein: Choosing to hear
JWisdom.com Zero to 1/60th: How to Empower An Hour with Gavriel Aryeh Sande (7 minutes)
Caroline B. Glick The mullahs' big week
Suzanne Fields A Fallen Wall for Fallen Man
Nov. 5, 2009
The Kosher Gourmet: Three scrumptious -- but simple -- butternut squash dishes
JWisdom.com Hidden Hints: Unlocking Faith & Prayer with Rabbi Jay Yaacov Schwartz (10 minutes)
Nov. 4, 2009
Tom Hamburger and Kim Geiger: Should prayers be covered?
JWisdom.com When God played peacemaker With Rabbi Sroy Levitansky (5 minutes)
Nov. 3, 2009
Martin Peretz: Beware, Barack. Beware, Rahm. Beware, Axelrod
JWisdom.com Are you are closet idolater? With Sara Yoheved Rigler (10 minutes)
Nov. 2, 2009
Paul Greenberg: The Holocaust is now on Facebook
JWisdom.com Abraham's Strange Change With Rabbi Yitzchok Fingerer (5 minutes)
Oct. 30, 2009
Rabbi David Aaron: Secret to Immortality
Caroline B. Glick Silencing dissent in America
Oct. 29, 2009
Lini S. Kadaba: Do tactics avert flu or reduce humanity?
JWisdom.com We Must Revamp our Religious Vocabulary With Gavriel Aryeh Sanders ( 10 minutes)
Oct. 28, 2009
Rabbi Yonason Goldson: Atheists in Bubbleland
JWisdom.com Why what we wear impacts who we are With Rabbis Mordechai Becher, Menachem Golberger and Aliza Bulow ( 10 minutes)
Oct. 27, 2009
Paul Greenberg: The United Nations Is Outraged Again, Or: Department of Mideast Static
JWisdom.com The Science of Love With Rabbi Jonathan Rietti ( 7 minutes)
Oct. 26, 2009
The Jewish Ethicist by Rabbi Dr. Asher Meir: Damaging disclosures with a twist
JWisdom.com Wisdom and Wonks With Rabbi Eytan Feiner ( 7 minutes)
Oct. 23, 2009
Rabbi David Aaron: Are you ready for the ultimate pleasure?
JWisdom.com Watermark and oneness with Rabbi Sroy Levitansky ( 4 minutes)
Caroline B. Glick Stop using limited powers in a way that expands our enemies' advantages over us
Oct. 22, 2009
Steven Emerson: Terror Cases Share Desire to Kill Americans
JWisdom.com No More More Family Fights --- Really? By Sarah Chana Radcliffe ( 5 minutes)
Oct. 21, 2009
Tonya Alanez: Holocaust denier sues survivor, calling Auschwitz memoir 'vicious lies'
JWisdom.com Meditating Jewishly: A Panacea for Success by Sarah Yoheved Rigler ( 7 minutes)
Oct. 20, 2009
Dennis Prager: Obama and Dalai Lama: Why Israel Worries about U.S. President
JWisdom.com Abraham was not religious By Rabbi Yitzchok Fingerer ( 6 minutes)
Oct. 19, 2009
JWisdom.comWhy Good People Do Bad Things By Rabbi Eytan Feiner ( 7 minutes)
Oct. 16, 2009
Rabbi Yonason Goldson: The Perfect Number
JWisdom.com Hearing Voices By Rabbi Sroy Levitansky ( 5 minutes)
Caroline B. Glick How Turkey was lost
Oct. 15, 2009
Jeff Jacoby: Peace vs. the 'peace process'
JWisdom.com: Former MTV producer and stand-up comedian Rabbi Lawrence Hajioff: Taming a Control Freak (A VERY fast 15 minutes)
Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review Nov. 11, 2008 / 13 Mar-Cheshvan 5769

Obama must forsake cap gains tax hike to stabilize markets

By Dick Morris & Eileen Mc Gann


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http://www.JewishWorldReview.com | Wall Street is engaged in a test of wills with President-elect Barack Obama. The market, which dropped one thousand points last week, is not going to recover until the next president forswears his plans to raise the capital gains tax. In our book Fleeced we predicted that the Dow would crash after an Obama election because of fears that he will raise taxes, particularly the tax on capital gains.


As we argued in Fleeced, even an unsophisticated investor realizes that if he sells now, he will only have to give the government 15% of his profits whereas if he waits until Obama takes office, he may have to fork over an additional five to fifteen percent of the profits to Washington. Any moron can tell it makes sense to sell before the tax hike kicks in. And since these increases are usually retroactive, investors will take care to sell ASAP rather than wait.


So Obama is in the position of asking people to have confidence in the markets, even though he proposes to as much as double their taxes should they succeed.


The collision course between Obama's leftist ideology and the reality of the markets could not be more striking. The president-elect is surrounded by economic advisors who want to raise capital gains taxes, as much because of their ideology as for any practical benefit. Dick recalls vividly his meeting with Bob Rubin when he was Treasury Secretary under Clinton. Rubin opposed any cut in the capital gains tax even though he admitted that a cut in the tax would not cut, but might even augment, government revenues. Obama, himself, defended an increase as a matter of social fairness in the campaign debates when he was asked whether he favored increasing the tax even though history showed that a higher tax did not generate increased revenues.


Now Obama will have to choose between ideology and reality. Unless and until he pledges to abandon his plans for higher taxes, he will find nothing but bad news in the business sections of the nation's newspapers. He can claim all he wants that the crash is due to Bush's policies, but the fact is that the market advanced during the last week of the campaign when it looked like McCain was gaining and then fell sharply in the two days after Obama's victory.


Depressingly, many of the predictions in Fleeced are now likely to come true, from the overloading of our health care system and the resulting rationing of health care to the weakening of the Patriot Act. We will report on these as they unfold, hoping to generate a climate of moderation and pragmatism in Washington.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.


JWR contributor Dick Morris is author, most recently, of "Fleeced: How Barack Obama and Hillary Clinton, Media Mockery of Terrorist Threats, Liberals Who Want to Kill Talk Radio, the Do-Nothing Congress, Companies ... Are Scamming Us ... and What to Do About It". (Click HERE to purchase. Sales help fund JWR.) Comment by clicking here.



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© 2008, Dick Morris

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