Obama’s Economic Remarks in Ohio … say what ???

I’d bet the ranch that Obama took no courses in economics, business, or taxes in college. (Of course, we’ll never know since he refused to release his transcripts.)

Here’s one of his frequent refrains that makes me cringe:

“And so a couple of things that we’re focused on right now is, number one, making sure that small businesses are getting help, because small businesses like Joe’s architectural firm are really the key to our economy.

They create two out of every three jobs.

And so we want to make sure that they’re getting financing.

We want to make sure that we are cutting their taxes in certain key areas.

One of the things that we’ve done, for example, is propose that we eliminate capital gains taxes on small businesses so that when they’re starting up and they don’t have a lot of cash flow, that’s exactly the time when they should get a break and they should get some help.”

Obama’s Economic Remarks in Ohio, August 18, 2010

Perhaps somebody can explain to me what capital gains an upstart small business has?

Sure, there are capital gains when a small business goes public or gets bought.

But – except for small companies that buy and sell assets, e.g. financials, real estate – there are no capital gains from normal operations.

So, cutting the cap gains tax rates does nothing to increase cash flow … save for being an incentive to get others to throw dough into the business.

So, what the heck is he talking about ?

One Response to “Obama’s Economic Remarks in Ohio … say what ???”

  1. Carp Says:

    I think it has been true for a long time that we can no longer expect President’s to have anything except very minimal knowledge in the professional fields for which they are required to provide leadership.

    My bet is Obama, like other presidents,vice presidents, senators… including those that “invented the internet”, have a basic idea of what is required and hope the gaps are filled in by real experts.

    With the movie-star nature of presidential elections and the unforgiving complexity of running a nation, it is probably tragic but true that the skills that got you to the White House are no longer the ones that allow you to excel in that position. The one exception and the only real hope here, is the ability to choose competent staff.

    In this case the President may need to review his staff tasked with briefing him on of-the-cuff financial advice.

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