Tuesday, July 31, 2007

Dems Losing Tax Hike Mojo

Some very good news on the tax hiking, war against prosperity front: Democrats Lose Zeal for Raising Hedge-Fund Tax according to a page one Wall Street Journal story today.

This is no time to start raising taxes.

In fact, one of the best antidotes to the current bond market credit freeze is strong profits and plentiful liquidity. Low tax rates help create both.

Stocks are recovering on good profits, as I wrote in my column, "Profits Matter." But tax rates matter too.

Let’s hope this whole hedge fund/private equity tax threat goes away.