Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Investors Hedging on Tax Increase

In the Wall Street Journal by John D. McKinnon, Ben Levisohn, and Justin Lahart (Looming Tax Increase Coloring Investment Decisions), September 13, 2010 ({FP} pg. A4). Many successful investors are being encouraged to sell oversized positions in anticipation of expiring Bush-era tax breaks. Beginning January 1, 2011 taxes on dividends and capital gains will increase by 5% to 20% for families earning in excess of $250,000. Many financial analysts believe that the tax change may initially hinder financial markets, but a study of the stock-market immediately following the original tax cuts found very little impact on investing. Democrats believe that only 3% of small business owners would be impacted by the changes. Republicans focus more on the large amount of small-business income that would be impacted. (George W. Bush, John Boehner, House GOP Leader, Weyerhaeuser Co., Warner Chilcoyy PLC, Alan Auerbach, professor at the University of California at Berkley,

Disclosure: no position