Friday, December 03, 2010

Consequences of not extending the Bush tax cuts

U.S. News says December stock market crash.

TaxProf Blog points out an extraordinary December 30 dividend that will lock in the 15% tax rate.


JLM said...

Sounds obvious, but not necessarily meaningful.

If investors become faux bears in December, as they harvest their gains, won't they have to turn into faux bulls in January, as they restore their positions?

Jim Gust said...

I had that thought also.

However, it could depend upon how bad the bloodbath is. If stocks go into negative territory for the year, people could be too scared to invest in January.

I think David Brooks might have nailed it in today's Times. Announce a one-year extension of the current tax system and adopt the deficit commission changes next year.