The Two Great Accomplishments Obama Won’t Claim
by Alexander Green, Investment U Chief Investment Strategist
Monday, November 5, 2012: Issue #1897
We can argue whether he deserves the reputation or not, but President Obama is viewed in many quarters as anti-business. Critics say his healthcare plan, regulations, mandates, and proposed tax increases stifle economic growth and prevent businesses from creating new jobs.
The Obama campaign counters that this simply isn’t true. And the President himself makes a point of calling the free-enterprise system the world’s greatest engine of prosperity.
He’s certainly right about that.
However, Obama’s reluctance to take credit for two great achievements indicates he is not only anti-business but anti-investor, as well. The first accomplishment is U.S. corporate profits. They aren’t just good. They aren’t just better than expected. They are an all-time record. No small feat.
This, in turn, has led to an equally formidable second development. Practically since he took office, the U.S. stock market has doubled – a decided plus for corporate shareholders and equity mutual fund investors – yet Obama never mentions either achievement. Ever. He makes no attempt to take credit.
It would be naïve to say Obama is just being humble. This is a man who told us he would make the seas recede and compared his achievements favorably to those of “any president” since Lincoln, with the “possible” exceptions of FDR and LBJ. Low self-esteem is not his problem.
Of course, whenever presidents of either party run for re-election, they routinely vacuum up the credit for everything good on their watch and explain away negative developments as circumstances beyond their control or the fault of an obstructionist opposition. Or, although this is fairly new, they lay the blame on their predecessor.
It’s a gross oversimplification, of course, to say George W. Bush (a disaster, in my view) caused the Great Recession or that Barack Obama is entirely responsible for today’s sputtering economy.
As much as pundits and the media like to say the man in the Oval Office is “running the country,” it simply isn’t so. What makes the country run is hundreds of millions of men and women getting out of bed each morning and making things happen. Yes, government policies and new legislation can affect the economy for better or worse, but the beautiful thing about the free-market system – since it’s based on the most durable of foundations: rational self-interest – is it’s awfully hard to wreck.
Yet the economy today is moving with a decided limp. Consumers are over-leveraged. Businesses feel like they are weighed down with federal regulations and mandates. To top it off, Obama is heralding a new round of tax increases.
Even Keynesians, who favor massive government intervention in the economy, oppose jacking up tax rates in a downturn. Yet look at Obama’s very specific proposals:
- He wants to raise the top marginal income tax from 35% to 39.6%.
- He wants to raise the top long-term capital gains rate from 15% to 20%.
- He wants to raise the top tax on dividends from 15% to 39.6%. And that’s in addition to the new 3.8% tax on dividends (to pay for ObamaCare) that goes into effect January 1. In other words, Obama will raise the top tax rate on dividends 189% to 43.4%.
- He wants to replace the alternative minimum tax with the Buffett Rule. That means the highest income earners will pay a minimum 30% tax rate on wages, interest, dividends and capital gains.
- You can’t even die unmolested. Obama also wants to tax more estates by lowering the exemption while raising the death tax rate from 35% to 45%.
This combination of specific tax hike proposals and utter silence about record corporate profits and sterling stock market performance lead to an inevitable conclusion:
These aren’t accomplishments he values. And business owners and investors aren’t his concern… or his constituents.
Good Investing,
Alex
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25 Responses to “The Two Great Accomplishments Obama Won’t Claim”
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I’m fully aware that I’d pay more taxes based on Obama’s tax plan, because I’m among the top “1%” defined by his plan. However, the biggest difference between Obama and Ramney is that we know who is Obama, but no one probably including himselfcan figure out who is Ramney. Ramney is the most dishonest and ellusive president candidate we have ever known. The guy is a 100% opportunist.
Yes, I’d elect a president who recognizes climate change (and raising sea level) as a serious problem for mankind than another guy who takes it as a joke.
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Yes, I agree. Who is Romney anyway? And, I am a business owner and an investor, AND I am an Obama constituent.
Alex, who do you think you are that you can speak for everyone. Shame on you. Viva Obama!
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so what are the new estate taxes|
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Please keep your political views to yourself. I pay for investment advice ,nothing else.
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I respect and enjoy Alex’s writings and much of the OC and Investment U work.I have been a Chairman’s Circle member for years and have profited from the advise and recommendations.
As an investment news site, you take a one sided view of this situation, prejudiced anti-President Obama. There are plenty of negative facts that could be brought up against Governor Romney and his economic stances, from the past and should he be elected. The article would have been more beneficial had it presented both sides: pro and con.
While this is an investment viewpoint, I represent one of the “53%” supporting the President for re-election mainly because, “It’s not all about money.” The economic, social and human issues all have a cost and benefit, impacting ALL Americans.
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This should happen long time ago.
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Oh shut up Alex! Obama never said he would part the seas and don’t we all know that the stock market is a leading indicator? You are correct in saying that the economy is about working people getting up and doing things. Sabotaging the economy by stabbing the American Jobs Act in the heart is what keeps the economy sputtering. No matter how high or low your taxes, there are no profits without customers. All those teachers, construction workers and government employees we are determined not to put to work are the grease we withold from the wheel so cock-eyed pundits like yourself can have something screwy to print in subscription newsletters. Get serious America!
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Marc you surely sound like and budding vintage Obama Kleptocrat to me…keep the Keynesian money flowing inside the beltway so some GS 15 at her meaningless job can afford to send her kids to Sidwell Friends huh?…
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What a disappointing article. There are many who do not believe that the President is “anti-business” or “anti-investment”– even those who are familiar with his tax plans, including the greatest investor of all time, who has succeeded under Democratic and Republican administrations alike, and no doubt will continue to do so. Nor does everyone believe that the President promised to “make the seas” recede, or that he uniquely qualifies, among other presidential candidates past and present, from not having “low self esteem as a problem.” Could you be any more cynical about our President, or disdainful of him as a person? Please stick to teaching people how to be better investors.
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Cry me a river! We haven’t officially put Obama back into the White House(yet) and you’re exposing his unfair economic practices. Alex, are you ever going to go broke in your lifetime? Why don’t you stick to investment advice!
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‘WHAT MAKES THE COUNTRY RUN’, YOU ASK ?…..,,,,
I AGREE, MEN AND WOMEN GETTING OUT OF BED AND
MAKING THINGS HAPPEN. HOWEVER, I ALSO BELIEVE WE
DO NOT NEED A PARTY OF ‘NO’ WHICH HAS FILIBUSTERED
200 + — DENYING THE GOVERNMENT THE ABILITY TO MOV
FORWARD. WHAT HAPPENED TO THE SEPARATION OF
RELIGION AND POLITICS. — BACKWARD IN TIME.
LASTLY, WHO IS MIT ROMNEY?
—-TO-DAY????? ELEANOR HUNTLEY
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You guys are obviously supporting legal marajuana as well. I look forward to what you have to say if the “liar in chief” wins and destroys the country in the next four years, which he will. There will be no business, everbody will be on the government dole and the rest of the world will laugh at our demise. God help us and God help you idiots
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Your stance is what has got the US and the world into this mess in the first place.
Not only are you satisfied to make money by sponging off the efforts of others, but you are so greedy that you object to paying fair amount of tax from your well above average wealth.
Don’t bleat that ‘wealth trickles down’ It does no such thing, it is sucked out of the system and floats up to the top, to bolster already grotesque and disproportionate wealth.
I have shares, certainly, but I also work for my money and expect to pay something towards the country and services that I live in.
You DO realise what a mess the US is in, don’t you? What philosophy do you think got it into that situation? Hint: It was NOT giving money to grannies on the poverty line or people whjo needed help with their health.
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Very disappointed with this article, infact I have unsubcribed!
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Like those above, I paid for investment advice (Chairman’s Club member), not for you to take advantage of my membership and email address to push your political views. Shame on you, Alex.
Not all of us are believers in Ayn Rand’s philosophy of “rational self-interest” as you appear to be. Please keep your political opinions to your dinner party circuit.
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I am disappointed by your inferences and conclusions. You imply that Obama’s policies helped business and then you state that everything he did and wants to do is wrong! Your judgements are politically motivated and have no place on this forum.
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Like you said over simplification. Now how do you plan to get out of this mess without a tax increase. The depression was brought on by tax and spending cuts. I am not interested in a depression. Your article is contradictory. You say he has helped the market increase, you have to like that, and profits all time high. So maybe he knows what he is doing. Don’t kill the goose that laid the golden golden egg.
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But, all the republicans jumped all over his comment “the private sector is doing well”. His opponent is the credit takeer. Masachusetts won’t support him. School reform and health care were in the pipeline when he took office. Obama didn’t help most of corporate America, he did take credit for the auto bailout.
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Wow, we now know why Obama was voted back in. So many people have bought into the big lies that taxing the wealthy is going to help, Obama saved GM, and that the repubs are the party of no. First, the problem is NOT a lack of government revenues but is in fact a government that spends too much. Do you really think that giving the government more money is going to suddenly get them to spend less? Government by its very nature wants to spend money. It won’t become fiscally responsible when you give it more money. GM is not in good shape. Failing to go through a legitimate bankruptcy process resulted in pension obligations it still cannot repay. GM is still on the road to insolvency. Obama kicked that can down the road. And the party of no? Both parties say no to each other. How about the party of no budget for years? Can’t have anyone actually look at a plan because then you can meaningly critique it. Better to have no plan and criticize everyone else’s ideas.
And please just shut up about the wealthy don’t pay their share. The top 10% pay 70%of the income taxes. The bottom 50% pay 3%. Whose not paying? The elitism of americans iin this country is astounding! Average incomes of $30- $50 thousand dollars and they feel impoverished. Take a look around the world. Half of the worlds population would gladly and immediately trade their lot in life for what our blues singing Americans have.
The real problem with this president is his devisiveness. He sets all of us against the others with racial,economic, gender and social divides. We need a uniter not a divider. Better the government stays stalemated for the next four years than implement anymore expensive worthless programs.
I could go on and on but the ignorance above makes me need to go drink….lol
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Sorry you socialist idiots… I was employed by one of the largest adencies in the US Gov. And if you think the GOV is NOT wasting your money your are stupid. In washington there are 1000s of gov workers… or shall I say people receiving pay checks who collect about 166,000 and do really nothing but create studies and briefs what improve nothing and are rarely even read. Obo is distroying the country. Also do you forget he had both the house and the Senate and did nothing but send YOUR money to failing companies and wasteful unions…. and I am sure a few Chicago friends. Trump is correct China is laughing at us.
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Is this financial advice or more useless right wing ranting? This is why I no longer pay for your service
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As a canadian I ask myself why the united States would damage itself with higher taxes, the FATCA statues will drive investment out of america, the witholding taxes doubling to 30% and dividend treatment means I withdraw from investin g in the US. Tomorrow the USA could have energy independance, security, of supply, for hundreds of years by simply looking north to Canada, instead you damage relations with impediments to trade, pipelines, energy, investment, and drive this valuble source of security towards Asia! The Government support of alternative energies will not hasten the arrival of economical viable technologies but it will increase the debt, limit the change! Hollywood condemns our Oil Sands but the state of Wisconsin puts out more CO2 from coal than the entire Oil industry in Canada! The oxford Club has not been the investment guide through these difficult times I thought it would be !
Thanks
Richard
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Alex, I have read through all of these comments so far. Please take the advice that was given you to stick to investment advice. Seems that a majority out there LIKE Obama. You, however, have saddened my day.
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I have a good friend whom I help with her stock portfolio. She goes on and on about Obama
and how we should pay higher taxes and have Obamacare, meanwhile I keep making money for her, but don’t tell her how foolish she is. I know I could never be a good investor if I saw the world like she does. Thank you Alex for your keen mind and shrew observations.
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Amazing how the liberal trolls think that by lying and saying they are rich, the 1% or they are Republicans, etc., that therefor we will be fooled into accepting the vitriol that follows. Pathetic.
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