Cramer: Tax the Rich
“Millionaires should pay more,” Cramer said Wednesday of the current debate over taxes, which is centered on the repeal of President George W. Bush’s tax cuts. Rich Americans “got a break for a long time.”
President Bush's tax cuts are set to expire on Dec. 31, and Democrats and Republicans are fighting over whether to extend them. President Obama wants to keep tax rates steady for the middle class, those earning less than $250,000 a year, while letting tax cuts for people making more than that expire. Republicans, meanwhile, want the tax cuts extended across the board.
Cramer, though, called for a compromise, noting that in certain metro areas like New York and Washington, D.C., $250,000 is middle class. Therefore, he called for Democrats and Republicans to agree on an amount somewhere between $250,000 and $400,000.
“Middle class taxes must go down and stay down,” Cramer said, adding that defending the rich right now was a “loser issue” for the GOP.
In housing, Cramer offered a different side to negative reports on the housing sector. While the latest numbers indicate that home prices are decline, Cramer pointed to a J.P. Morgan research report that showed price stabilization in some of the country's hardest-hit areas, including Arizona, Nevada, California and Florida. This proves that right now “things are more mixed” than people think.
What had been the worst real estate markets in the US are now “stable,” Cramer said. “That matters.”
For further proof, Cramer pointed to the positive action in stocks like Costco , Home Depot and Williams-Sonoma .
“These are stocks that don’t go up if [housing] continues to go down,” Cramer said. “You don’t put more money into a house,” Cramer said. “Not if it’s losing value.”
When this story published, Cramer's charitable trust owned Home Depot.
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