Barack Obama is in favor of nearly doubling the capital-gains tax rate from 15 percent to 28 percent. (I think, that was the rate before Reagan's time or so). He thinks, by doing so, he is taxing the rich and helping the middle class. But his definition of middle class aren't very helpful to middle class. Majority of middle class invest and they (we) all will be affected by his plans.

As reported in CNN sometime back, all his personal assets were in money market funds, which tells us that he is not a risk taker (?)

On the other hand, he is for eliminating all capital gains taxes on start-up businesses. (Ref: http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf). Does it mean, I should invest more with my LLC account and less with my personal account?

Whatever the way one may argue for or against this idea, I strongly believe, raising the capital gains tax will not help middle class.

"Only a thoroughgoing economic illiterate could sincerely declare that such taxes would not damage the US economy" as per the article - Obama's Capital Gains Tax is a Tax on Economic Growth (http://www.marketoracle.co.uk/Article4337.html).

What do you say?