Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

Delaying Tax Vote Could Crash Stock Market

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Paul Bedard
US News
Dec 3, 2010

Failure by Congress to extend the Bush tax cuts, especially locking in the 15 percent capital gains tax rate, will spark a stock market sell off starting December 15 as investors move to lock in gains at a lower rate than the 20 percent it would jump to next year, warn analysts. [See who gets the most money from the financial industry.]

While it is unclear how bad the sell off could be, it could wipe out the year’s gains, they warn.

“Capital gains tax rate will increase from 15 to 20 percent if the tax cuts are not extended. The last time the capital gains tax rate increased–on Jan. 1, 1987 from 20 to 28 percent–investors realized their gains at the lower tax rate,” said Daniel Clifton at a Washington partner at Strategas Research Partners. “We would expect a similar effect this time around as investors see the tax rate going up and choose to realize their gains and incur the 15 percent tax.” [See a gallery of political caricatures.]

In a memo to clients, Clifton says that the date most clients are focused on is December 15th for a deal in Congress before beginning to sell. One reason: Many stock options expire that day and investors have to act.

The later Congress acts, he tells Whispers, “the more pressure that will build on the stock market.”

Full article here

  • A d v e r t i s e m e n t

Stock up for the Holidays with eFoods Direct and get FREE Shipping!

Delaying Tax Vote Could Crash Stock Market pptvholiday 360x420

This article was posted: Friday, December 3, 2010 at 5:43 am





Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

FEATURED VIDEOS
See the rest on the Alex Jones YouTube channel.

Ebola Czar: Overpopulation Controls Are Needed in Africa See the rest on the Alex Jones YouTube channel.

© 2013 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.