The MOST damaging of all the tax increases will be the increase from 15% to 39% for Capital Gains taxes. What will happen to the stock market and why is no one talking about this tax increase specifically?
Conservative economist Martin Feldstein spoke up Monday during a public meeting with President Obama at the White House, urging him to extend all tax cuts passed by Congress during the Bush administration and set to expire at the end of the year.
Obama has said he wants to allow the tax cuts for individuals earning $200,000 a year and families earning $250,000 to expire, while extending the cuts for all other brackets.
But during a meeting with Obama and an advisory group of business, labor and economist leaders, Feldstein said he was worried about what signal that would send, according to a pool reporter who attended the meeting.
“They have to pay slightly higher taxes,” Obama said of those with higher incomes, according to the report.*
“This is something we’re going to have to wrestle with as a society,” he added.
After the meeting in the State Dining Room had ended, Obama spoke with Feldstein — a top economic adviser to President Ronald Reagan who served as president of the National Bureau of Economic Research from 1978 to 2008 — as well as Treasury Secretary Tim Geithner and National Economic Council Chairman Larry Summers.
Obama told reporters on his way out of the room that he enjoyed the back and forth with Feldstein.