So Larry "Tax Kut" Low and the insane gang over at CNBC believe that President Obama is killing the market. I’ve seen them blame him for everything including the drop in their parent, GE’s health. Obama this, Obama that, it just doesn’t stop. As someone has already diared today, Melissa Francis of CNBC blamed a drop in the Dow during President Obama’s speech in Ohio on Pres Obama just talking. Wow!
More after the jump.
Well, one of the main ways that CNBC has accused President Obama of killing the market is because he wants to raise capital gains tax from 15% to 20%. What a load of bs. Speaking of bs, I have a bachelor of science degree in finance and have worked in the finance, investment, and real estate arenas for over the past 10 years so I know a little about how things work. The problem with CNBC’s statement that raising capital gains from 15% to 20% is absolutely killing the market can be debunked in this example which a 3rd grader can understand:
If someone approaches me and tells me that if I invest in xyz, my rate of return will be 10% then check this out: I take $1,000,000 and invest it so I make $100,000 at the end of the year and decide to cash out. Currently I would have to pay $15,000 dollars on the $100,000 that I made so I would pocket $85,000 for a one year investment. If that goes to 20% then I would have to pay $20,000 but would still pocket $80,000. So what CNBC is telling me is that one big reason the market has stalled is because people would rather keep $1,000,000 under the mattress and not make $80,000 in one year because they don’t want to pay the extra $5,000 in taxes? Larry, Melissa, Michelle, Dennis, Rick, Trish and all the other hacks at CNBC what say you? This is just one example of how easily you can knock back their crap.
These guys just don’t use common sense during their rants about President Obama because actually using common sense and math would debunk about 95% of the crap that they spew all day. I loved the Daily Show the other day because CNBC needs to be marginalized if all they are going to do over the next four years is cause businesses, investors, and ordinary people to be gloomy and hateful towards President Obama just because they don’t like the guy.