DAVE ROSS

Nothing to fear! Go ahead and jump…off the fiscal cliff

Dec 4, 2012, 8:12 AM | Updated: 8:29 am

Go ahead and jump! An increasing number of lawmakers and economists say the Van Halen song is a goo...

Go ahead and jump! An increasing number of lawmakers and economists say the Van Halen song is a good theme for their increasing belief it's okay to take the plunge off the fiscal cliff. (AP image)

(AP image)

Still no fiscal cliff deal, but Republicans have put some real tax revenue on the table. And we are now seeing some economists questioning how scared we should really be about what might happen at midnight on December 31st.

Neither party wants the middle class tax increase, so that’s going to go away. But what about the tax increase on the rich? This threat that investors will go Galt? America’s Atlases will shrug, and the stock market will tank? That would be scary.

But now a few economists and at least one hedge fund manager are saying, wait. Let’s think about this.

The higher taxes on investments only affect taxable investment accounts. But today, most Americans who invest have their money in 401Ks, which aren’t taxed.

Today, less than 15 percent of American households have taxable investment accounts. So if taxes on investments go up, that means 85 percent of American households will see an effect of approximately zero.

Then you have foreign investors who don’t pay taxes in the US, and insurance companies and pension funds which also don’t pay taxes. As a result, there is at least one hedge fund manager who is saying the maximum effect on the stock market of just doing nothing might be around one percent.

Which would explain the the small but growing “Skyfall” caucus, and their pop metal theme, Van Halen’s “Jump.”

Where else are you going to put your money? Do you even bother to look at the rate on your savings account anymore?

As David Lee Roth sang, “go ahead and jump.”

Dave's Commentary

Dave Ross on KIRO Newsradio 97.3 FM
  • listen to dave rossTune in to KIRO Newsradio weekdays at 5am for Dave Ross on Seattle's Morning News.

Dave Ross

car culture...

Dave Ross

Ross: Are we killing car culture? Or is car culture killing the US?

I don’t think the question is whether we're going to "kill" our car culture. The real question is can we stop our car culture from killing the U.S.?

4 days ago

drivers data insurance...

Dave Ross

Ross: As cars release driving data to insurance, is your driving my business?

Every move you make, every swerve you take, every lane change you fake – someone’s watching you. Do drivers have a right to keep driving data private?

11 days ago

rent control...

Dave Ross

Ross: Rent control was never the answer in Wash.

The rent control bill died in the Washington State Legislature this week, even though Democrats control both houses.

1 month ago

end of democracy...

Dave Ross

Ross: Conservative activist earns applause for pledging an ‘end of Democracy’

The theme from Jack Posobiec's speech is that Jan. 6 was a righteous attack not on democracy, but on those who threaten democracy.

1 month ago

Image: Rep. Lauren Boebert, R-Colorado, is seen on Capitol Hill on Jan. 6, 2023. (Photo: Alex Brand...

Dave Ross

Ross: Voters can help cull bad politicians from the herd early

Let's remember that just about every occupant of a higher office once occupied a lower office, and was put there by us, Dave Ross says.

1 month ago

Super Bowl celebration...

Dave Ross

Ross: The NFL does it again

The NFL once again put on a show that was able to keep me tuned in for four hours even though I had no stake in either team.

2 months ago

Nothing to fear! Go ahead and jump…off the fiscal cliff