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Obama Tax Cuts

Obama’s proposal to cut the corporate income tax rate to 28% is just another present for the richest 1%. It will help more than the 1%, but most of the beneficiaries will be relatively rich, and will probably benefit more than the regular people will from their payroll tax cut. It’s arguable that that the corporate rate cut will provide needed stimulus, but the rich are already pretty well stimulated.

One reason interest rates are so low is that rich have plenty of money are are not investing. Thus relatively few people are borrowing to start businesses, etc. The current wisdom is that banks are not lending, but mainly that means not lending to regular people. The rich can get loans; they just don’t need or want them.

Obama’s going to help them out anyway, because they will give him money if he does. Of course, they will end up making a lot more money than they contribute to his campaign, but he’ll get his cut.

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