NEW YORK (TheStreet) -- In his State of The Union Speech, President Obama called for someAmericans to pay a minimum income tax of 30%. Yes, you heard thatright -- 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!" InObama's new parlance, it's now "30% or jail!" I wonder what GeorgeWashington would have said about this new paradigm.
- OK, cut it to 2% or whatever, but that doesn't change theprinciple and direction of the analysis at all: The long-term capitalgains rate is never 15%, but rather higher, and it increases for eachyear.
- I would argue that saving for particular goals long term,the inflation rate is likely much higher than those "official" 2% or3% numbers. People save for their kids' education and fortheir own health care when they get old. Those educational and healthcare inflation numbers have been far out-pacing the "plastic stuffmade in China" inflation rate that may have been 3% or below -- 7% isactually not a bad number.