In mid August, the President told reporters he was thinking about giving the middle income group a tax cut by cutting payroll taxes. The next day, the President decided that he would abandon the idea because of the strong economy. In an article by the Associated Press, the reporter tries to make sense of the President’s thinking process. The President’s flip flop came after recent market volatility and economic uncertainty about whether the US was headed to an economic slowdown or worse a recession. Given the strength of the overall economy, most people believe an economic slowdown would hurt the President at next year’s election.
The President also knocked down the idea of indexing for capital gains tax which applies to investors who sell assets which grew because of inflation. The President thought it was somewhat elitist as only a few percentage of Americans would qualify to use the indexing.
The President has been tweeting at the fed because he believes he was right that interest rates were raised too fast, too furious and the President now wants an interest rate cut.
Linking to dividend paying stocks, most leaders tend to let others float ideas that could be done; discussion is around the plus and minuses of the ideas and the economic and political possible outcomes. The President seems not to do this, he floats his own ideas and when he hears feedback will retract the ideas, which is an odd way to inspire confidence in the economy. It is sometimes amazing to consider the President has the ability to talk to any citizen about policy including those who are experts on both sides, but he seems not to. One hopes the company president of the companies you invest in uses a better network to make decisions.
There are more questions than answers, till the next time – to raising questions.