Quote from Brandonf:
You know I really don't see how anyone thinks that the current economic situation we find ourselves in can be solved without both increasing tax and decreased spending. That's fine on the individual level, it's not going to hurt too many of us very bad. I'm not rich, but I've made about $300,000 this year, and since I plan on pretty much taking the rest of the year off its fair to guesstimate that will be what I earn. The extra 3% I'd pay in going from 36% to 39% (all of $1500) is not going to put me, or anyone else, out into the streets. I have no problem with income taxes going up on a temporary basis to help solve the fix we find ourselves in. I'm not too happy about it though if it also does not come with a reduction in spending, which it appears neither man has the balls to push for. I think that corp and business tax levels are fine where they are. I'm also of the opinion that a clear distiction should be made between professional investors such as ourselves and IRA, Mutual Fund, mom and pop's grocery store etc type investments. I don't think it would be the end of the world if we as traders had to pay income tax on our gains instead of capital gains tax. However, the overall capital gains tax on investment in retirement accounts, in business expansion and the like should be reduced to a level that is as close to zero as possible. This is all of course my opinion, and I reserve the right to be wrong.
I'm in a very similar boat with you, Brandon, only even worse, because my wife earns a good salary too. The decision I had to make last year and this year again is whether to join a friend and expand my activities to develop and sell trading tools, perhaps even open a trading chatroom, etc etc, you know the drill, I was a member of your TFMS room for a while.
As an alternative, another friend suggested that we partner, incorporate in the Cayman Islands and join two European traders we know to trade part of their hedge fund that has been growing. Two very different possibilities.
Of course, both of these approaches would entail doubling my workweek, taking on more risk, hire people who may or may not want to work, etc etc, like Joe the Plumber, deja vu all over again. Especially, the first approach above.
Undestandably, I'm very hesitant. I can do it, but I keep asking myself - why? I have a good enough capital base and income right now and could keep on working on my trades, a few hours per day, no pressure. Why push the envelope? What for?
Frankly, if this whole election discussion had centered a bit more on the contributions, needs and concerns of the Entrepreneur, I may feel different. But I sense that the time when Americans respected those who created wealth around them (the ones who paid more taxes, hired employees, built factories, etc) is passing rapidly. As we can all see , we are entering a "wealth redistribution" period that may last for a generation or two. Oh well.
So, the smart people now may be the ones who hold off, lay back, see how the economy develops. In other words, it may be better to play tax defense, export some or all of my income, than being aggressive about creating new businesses in this country. This of course argues for keeping the status quo (independent trader) or following the second approach above, but I'm not sure yet. We'll see.
