CNN Money: Higher taxes threaten stock rally

[high density]

By 2013, investment taxes for the wealthiest Americans will rise to roughly 24% from the current level of 15% -- the highest level since the Reagan era. The tax applies to roughly 1 million individuals who earn over $200,000 and 4 million couples who rake in more than $250,000.

While this group makes up just 2% of the population, it's a far bigger driver of market activity than the other 98%. In addition, the higher rates aren't tied to inflation, meaning middle-class Americans will eventually price into the group.

On the plus side, the tax hikes are spread out over several years and are just one of many factors that influence stock values, suggesting the impact on the broad market will be moderate.

In fact, markets have been known to thrive in a higher investment tax rate environment. From 1986 until 1997, when the top capital gains tax rate was at 28%, the Dow gained in all but one year, with average returns of 15%.

http://money.cnn.com/2010/04/02/markets/stocks_tax_return/index.htm

Time to start crying for the top 2% everybody. They're going to be feeling some pain soon. The Wurlitzer is concerned.

[rfranklin]

1. Stock rally has nothing to do with "recovery"

Since our economy's health is now based on consumer purchasing we should tax the bejesus out of the wealthy, redistribute the money downward and let the consumers spend their hearts out.

[Birthmark]

4. Bingo.

But that would make sense.

[Gman]

2. I'm surprised they didn't use the "kill jobs" argument too

Kill jobs is the one everyone knee jerks over right now and they know this and use it for anything and everything.

[Birthmark]

3. O NOES! They be taxin' us!!

[mbperrin]

5. Of course, there is actually no stock rally and hasn't been for years.

October 9, 2007, market closed at 14164. Never been anywhere near it since. In fact, at current levels, that's a 40% LOSS in three years, not counting any inflationary effects at all.

But there certainly are numerous sucker rallies, where the big fish lure the little ones in, take their money, and invite them to try again.

Sort of like Vegas, but without great hotels, complimentary drinks, shows, or inexpensive delicious eats.

[rfranklin]

8. And no hookers or bondage bars!

That means you've lost the Republican demographic.

[CountAllVotes]

6. how very sad.

:nopity: for the rich.

:dem:

[Skink]

7. This is about those sunset clauses right?

I don't remember Obama raising taxes. Even what's in the healthcare legislation doesn't kick in for awhile.

[Union Yes]

9. Bush proved that cutting taxes destroyed our economy. Tax cuts are job and economy killers. nt

[Ikonoklast]

10. What a pantsload.

Cutting taxes of the priveleged few is what got us into this mess.

Lets go back to the Eisenhower-era rates.

[Dawgs]

11. Saw that earlier and was like, 'what higher taxes?'. And, then I opened the article.

Boy was I 'shocked' to see this site using fear to scare Americans. 90% of their articles are right wing talking points. They are disgusting as every other stock market 'expert'.