America has always had it’s fringe.  There has always been a backlash against populist presidents.  There were those who hated William Jennings Bryan (almost President).  Go figure.  There were those who predicted the end of America with the election of Andrew Jackson… Yeah, we know the kind.

But in the past, what a hillbilly thought back in some holler, stayed in some holler.  There was no manpower capable of driving down from New York, asking around the hamlet, finding him, driving back to New York with a hillbilly in the back seat, then putting his picture and words on the Hearst’s front page…

Yet today, with social media, we can do exactly that… Lack of manpower is no deterrent….  Therefore in today’s world where common sense would dictate that bashing the president was better for any opposing cause than not bashing the president,… we fully expect it to continue…

However,  we must remember that if no one wanted to search out that back-in-the-holler hillbilly, we wouldn’t be hearing his words.

So who is the money, funding this apparatus and why are they so intent on bashing this president…..

It could be for policies like this…..


Current Law

Under the U.S. Internal Revenue Code, non-U.S. persons generally are subject to a tax of 30 percent on dividends paid on U.S. equities.

No one pays that tax anymore. Because of this…

The Loophole

Currently, many non-U.S. investors, including foreign hedge funds, enter into swaps or other derivative contracts that pay dividend equivalents, instead of directly holding the dividend-paying equities on which they are based. These foreign investors are therefore able to avoid the U.S. tax on a dividend by receiving instead a dividend equivalent, which is not currently subject to U.S. tax.

Treasury’s Action to End Tax-Avoiding Financial Gimmicks

Treasury’s proposed regulations under section 871(m) would align the taxation of dividend equivalents with the taxation of dividends from sources within the United States when the underlying security that generates the dividend equivalent is a U.S. equity.   Put simply, when finalized, the new rules will eliminate the incentive for non-U.S. persons to use financial products like swap transactions, forwards and futures to escape U.S. tax obligations.

Currently all the gains received by foreign investors in our national stock market that as boomed 20% since higher taxes kicked in last January,… are tax free….  but only if you are a foreign.  If you are American you pay the full price….

None of this gets translated down to normal Americans holding mutual funds.  But it is very relevant to those foreign interests with huge assets in American banks and markets.   For as much as one day’s profits, they could spend the entire budget of every election in the United States….

Their money is why those, in any way connected to the financial world, are into bashing Obama….

Doesn’t it makes sense for you and me and all other domestic stock owners to pay the same tax as do foreign investors, and not an infinite amount more?