After the election
The Colorado girl cried out election was finally behind us. Surprised or not surprised, we're back to normal life track. Immediately, media is talking about how to resolve the Fiscal Cliff and Europe Crisis. This is the job of the new congress and the re-elected president. Without much dividend, people would believe that the upcoming tax fight is the focal issue in the remaining 2012 schedule. At the same time, the stock market acting as another voting machine takes its stand after the election. But it seems there are hints in the election on where the market is going.
Not only the Democrat won the presidential election, they had more seats in the Senate and House. The Republican is still controlling the House but it lost one seat there. The Democrat is in majority in the Senate but less than 60 votes. So it seems the Republican is retreating. Before the election, 60-Minutes interviewed Harry Reid and Mitch McConnell in "Is the U.S. Senate broken?". Both leaders were annoyed by the lengthy negotiation to strangle recovery pace. So how fast the Senate will move on a consensus view on the Fiscal Cliff is unknown. The Californian rich tax increase may have provided clues.
Jerry Brown's Prop 30 was passed by California voters. Prop. 30 calls for a sales tax increase and staggered tax increases over seven years for individuals making $250,000 and families earning $500,000 or more. Along with Warren Buffet's more tax on rich appeal and big banks such as JP Morgan and Goldman are willing to pay more tax, the rich are responding. Therefore, we can project that even as Boehner said tax increase is unavoidable, it probably won't make too much noise. In the end, the ones who fall hardest off the cliff are the 1% or 5%, not the 99% or 95%.
An interesting side note on the Prop 30: neighbor state Arizona is putting on incentives on Californian CEO's to move to Arizona after the bill passes. The state thinks that more Californian companies will move to the state because of their tax advantages. No doubt small business will be impacted. However, the real question is, by how much?
Not only the Democrat won the presidential election, they had more seats in the Senate and House. The Republican is still controlling the House but it lost one seat there. The Democrat is in majority in the Senate but less than 60 votes. So it seems the Republican is retreating. Before the election, 60-Minutes interviewed Harry Reid and Mitch McConnell in "Is the U.S. Senate broken?". Both leaders were annoyed by the lengthy negotiation to strangle recovery pace. So how fast the Senate will move on a consensus view on the Fiscal Cliff is unknown. The Californian rich tax increase may have provided clues.
Jerry Brown's Prop 30 was passed by California voters. Prop. 30 calls for a sales tax increase and staggered tax increases over seven years for individuals making $250,000 and families earning $500,000 or more. Along with Warren Buffet's more tax on rich appeal and big banks such as JP Morgan and Goldman are willing to pay more tax, the rich are responding. Therefore, we can project that even as Boehner said tax increase is unavoidable, it probably won't make too much noise. In the end, the ones who fall hardest off the cliff are the 1% or 5%, not the 99% or 95%.
An interesting side note on the Prop 30: neighbor state Arizona is putting on incentives on Californian CEO's to move to Arizona after the bill passes. The state thinks that more Californian companies will move to the state because of their tax advantages. No doubt small business will be impacted. However, the real question is, by how much?
posted by Intl.investment.services at
10:55 AM
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