Should we link a Job's Plan with Taxing Millionaires?

What's wrong with a quid pro quo when it comes to a Millionaires Tax to pay for a Job's Plan? I'll tell you what's wrong with it. And I do support a Job's Plan and I support a tax on Millionaires. What I don't support is a link of a tax increase specifically implied to pay for it, rather than paying for the general expenses of the government. You see it sets a precedent. We know our taxes go to pay a piece of every government program and expense. But if we start down this path think about how many will say they don't want to pay the part of their taxes that pays for our Military or they don't want to pay for their part of the IRS or the Energy Dept., or the EPA.

I think we should get more taxes to help offset the expenses and debts we have incurred at this time in our economy. And I think those increased taxes would be best obtained from those who have had the most tax breaks and can best afford it. That means taxing the Millionaires and Billionaires a little more. And we should couch those increases as needed to help us fund the government, not just a Job's program. Fairness in taxation is a must.

What do you think? Leave a comment.

Market comments for May 26th

Initial Jobless Claims for the week of May 21st unexpectedly rose to 424K, while expectations were for only 400K, and the previous week's data was revised higher from 409K to 414K. This recent rend over 400K is going in the wrong direction for a sustained recovery, but the Futures market seems to be shrugging off the news. Dow Futures are up in premarket +21 points for the Dow.

Next Thursday we will see what these 4 weeks of numbers back above 400K Initial Jobless Claims ha done for the May Unemployment rate, but I suspect it is going to tick up to 9.1%.

The 3 Month chart of the Dow below, shows that, while the market gained yesterday, we are still below the 50 day Moving average. Notice yesterday's volume was lower than Tuesday's volume. On a rising day, if you are a Bull, you want the volume to exceed the previous down days.

GDP for the 1st Quarter came in again at only 1.8%, which is far below what is needed for a sustained recovery. I think the facts are starting to emerge that the Fed's QE2 has not done much more than to keep us from sliding back into a recession, but just barely this past year.

European markets are mixed this morning, so that it seems their debt issues don't appear to be taking down their markets today, so we may follow suit. There is less than 0.5% movement in any of the European exchanges at this time.

Monday the markets here are closed, as it is the Memorial day weekend. And remember this about the debt level, it has not been resolved. Politicians on both sides seem to be locked in their positions, with Republicans saying they will not accept any tax increases as part of debt reduction and the Democrats saying they will not accept any reductions in the debt regarding entitlements without some tax increases. All this while the clock is ticking for our government to face default by August. What madness!