Now, a few points
- A Fiscal Year for the Federal Government is from October 1 through September 30. Thus, FY2009 ranges from 2008/10/01 through 2009/09/30. President Bush is responsible for part of FY2009. His expected spending as of January 2009 was $3.133 Trillion. President Obama must assume the additional $387 Billion for FY2009 as a result of his spending programs.
- Note how structural the spending under President Obama is. This is not pure stimulus. It is structural, expected, and 'budgeted'. His structural spending increase is at least $600 Billion. Can we afford that?
- And, note how slowly revenue growth is trending upward. We could afford Obama's structural spending if revenue was growing as rapidly as occurred during either the Clinton or Bush presidencies. It has not, however.
Every year since President Obama became president he has threatened to increase dividend taxes. Why should an investor want - and thus a corporation generate - dividend income when there is a chance of vastly increased taxation? And, for the Libs out there, corporations must pay dividends with AFTER TAX profits. Thus, viola, businesses just move a number here and an expense there - resulting in less profit. I don't want heavily taxed dividends.
With President Obama's dividend tax treatment I no longer want dividends - I want capital gains. As a result, and because I am a prophet of the obvious, here comes Enron II as corporations game the stock price...