So whether Obama or Romney, there will unlikely be any radical changes in the political structure to headoff the looming debt crisis.This goes to show that elections have mainly been used to justify policies which benefit many entrenched power blocs operating behind the scenes.Given the above conditions, the pricing dynamics of the markets will, thus, represent expectations from the feedback loop mechanism between policies and market responses to them.
In a close battle, the incumbent have the edge. This is because they hold the political machinery which can be used to their advantage through whatever means
There will probably be defense cuts for now. But should the US encounter “unexpected” expenses, including any new war, they will be quickly eliminated. Unexpected events that increase the defense budget will definitely occur. The only thing that is uncertain is the precise events that will arise.
Today, the tax rate on dividend income is 15%. If this expires, the tax rate on dividends would jump to 39.6%. That would significantly reduce the rate of return on dividend-paying stocks like utilities….…But we're talking about a potential 25% tax hike on dividends. We've never seen anything like this before.
If a taxpayer owns appreciated stock outright –– not through a tax-deferred retirement account –– that the individual has owned for more than a year and wants to lock in the 0 percent to 15 percent tax rate on the gain, but thinks the stock still has plenty of room to grow, he or she should consider selling the stock and then repurchasing it