Oh Hillary, There You Go Again

My Shocking Encounter With Senator Hillary Clinton by Dr. Mark Skousen, Advisory Panelist, Investment U

Last week I had a chance to interview Senator Hillary Clinton, the former First Lady. You may wonder, what’s that have to do with investing? Plenty! Senator Clinton wants to change her title from senator to President, and make her husband First Gentleman. And it may happen...

Some Wall Streeters believe that another Clinton presidency will cause a repeat of the huge bull market experienced under President Bill Clinton.
It’s hard to forget that the stock market had the best performance of the 20th century in the Clinton Nineties, with the Nasdaq quadrupling in value. Could it happen again under Mrs. Clinton?
Important Tax Rates Hang In the Balance
Along with several dozen Wall Street analysts, I got a chance to meet Senator Clinton at a private breakfast last week, and even at 8 a.m. she was fresh and all smiles.
After breakfast, she made what seemed like a campaign speech, largely bashing Bush and the Republicans, and then opened it up to questions. I asked the first one:“Senator Clinton, one of the biggest concerns here on Wall Street is the worry that you and the Democrats will raise taxes. One of President Bush’s success stories – perhaps the only one – is his 2001 tax cuts, especially the reduction of taxes on capital gains and dividends to 15%. As a result, tax revenues have risen strongly in the past three years and the Dow is at an all-time high. Senator Clinton, what is your opinion of the Bush tax cuts, and do you favor preserving and perhaps even lowering the maximum tax rate on capital gains and dividends?”She spent at least the next 10 minutes responding.
“I would not raise taxes a single penny unless for a national purpose,” she said. She then listed a half dozen new programs in which the federal government might need to fund.Then she unloaded the bombshell: She was strongly opposed to extending the Bush tax cuts beyond 2010. In other words, income tax rates would rise automatically. And for investors, the capital gains tax rate would rise back to 20%, and the dividend rate to 30% or higher. As to taxes specifically on capital gains and dividends, she said she was “agnostic” about the issue, adding that it was “not high on her list of priorities.” What a difference between her and her husband.
President Bill Clinton supported the capital gains tax cut in 1997, which helped fuel the bull market in the late 1990s. In late 1996, during the second presidential campaign, I spent half an hour with the president as his “running” mate (jogging with the president along a San Diego beach), and he told me about his support for relief to investors.
Big Gains Ahead Overseas
Analysts asked Senator Clinton about other important concerns...
She said she opposes school vouchers for poor people and minorities, favors “smart” trade over free trade policies with Mexico and China, and in the wake of the Virginia Tech shootings, supports stricter gun control laws.
After listening to her for an hour, I came away with the impression that she does not believe in her husband’s statement he made 10 years ago, “The era of big government is over.” Not if Senator Hillary Clinton gets elected.