NEW YORK ( TheStreet) -- In his State of The Union Speech, President Obama called for some Americans to pay a minimum income tax of 30%. Yes, you heard that right -- a minimum tax. He did NOT propose a maximum tax of, say, $3,000 per person per year, but rather a minimum tax.Remember the old robber's demand: "Your money or your life!" In Obama's new parlance, it's now "30% or jail!" I wonder what George Washington would have said about this new paradigm.
- OK, cut it to 2% or whatever, but that doesn't change the principle and direction of the analysis at all: The long-term capital gains rate is never 15%, but rather higher, and it increases for each year.
- I would argue that saving for particular goals long term, the inflation rate is likely much higher than those "official" 2% or 3% numbers. People save for their kids' education and for their own health care when they get old. Those educational and health care inflation numbers have been far out-pacing the "plastic stuff made in China" inflation rate that may have been 3% or below -- 7% is actually not a bad number.