This is Money – Perhaps you’ve been imagining that if Barack Obama becomes President of the US, he will impose tough new rules on Wall Street, sweep away the economic inequalities of the Bush years and demand that the gigantic banks that created the present mess are broken into a hundred powerless pieces. In which case, prepare to be disappointed.
On paper, the Democratic candidate sounds like a reformer.
He called the last Bush tax cuts exactly what they were: ‘The Paris Hilton tax break. It’s about giving billions of dollars to billionaire heirs and heiresses.’ Stirring stuff.
He claims that if elected he would increase the tax rate on capital gains to 25% and go after hedge-fund managers with venom.
Under Obama, the speculators would see gains on their income taxed at 35% rather then the measly 15% they currently enjoy. Other corporate taxes are also supposed to rise.
In practice he is unlikely to do any of those things for one simple reason: Wall Street owns him. Each year The Centre for Public Integrity in Washington DC compiles a list of the donors to top politicians for its annual book The Buying of The President.
