The effects of going over the cliff: An opposing view

Are we really headed for disaster if Congress and the president fail to come to an agreement over taxes and budget cuts before the first of the year? Some economists dispute that notion. New York Times: While data on the tax status of all stockholders is hard to come by, many economists agree than an increasing proportion of the entire equities market is now held by retirement investors whose holdings are not subject to current tax law; by foreign investors who don't pay American taxes, or by institutional investors like insurance companies and pension funds that are exempt from taxes. Sam Stovall, the chief investment strategist at S&P Capital IQ, said that even among individual investors who do pay the taxes, many have incomes under $250,000 and would not be subject to the increased rates on investment income proposed by the White House. The result Mr. Stovall is anticipating is that the coming changes will cause "a lot less of a hit than most people are making...(Read Full Post)