Senator Obama has talked a lot about how he will lower taxes for 95% of Americans. And after we've heard him say it, we've heard him repeat it, slowly emphasizing "95%".

It's true that Obama is proposing a small tax break of $500 to $1,000 for many Americans (although not 95% as he claims since 45% of Americans don't have pay taxes). What's not small, though, is the harm that will be done to our economy if he raises two types of taxes: capital gains and dividend.

When you think of our failing economy, what comes to mind? Most likely (if you ever watch the news), you think about our slumping housing market and the stock market. That's why Obama's tax increases are simply not smart.

When someone is taxed on capital gains, that means they have bought something at a lower price and sold it later for a higher price. This includes the purchase of houses, stocks, bonds, etc. A dividend tax happens when a stockholder receives a dividend—a payment from a company they own stock in.

Does anyone else see a problem with Obama wanting to raise taxes on people making money from buying and selling houses and stocks?

Obama wants to increase both the capital gains and dividend tax for those making over $250,000 a year. While Obama says it is "fair" to make the tax rates on rich families even higher, quite frankly, they are the ones with the most money to invest in the stock and housing markets. Their investment is just what our economy needs; it's what will help us turn the corner and get back on our feet.

If Obama has his way, though, he'll be kicking our economy while it's down, discouraging the 15 million Americans with the most money from buying stocks and houses (which would increase in value and help all Americans).

So, what about the rest of the plan, you ask? Honestly, if Obama would eliminate those two taxes, his plan doesn't sound too bad. In fact, we kind of like the sound of lowering taxes. And so do Americans. Unfortunately, that might be the only reason Obama is talking about tax cuts. He has voted time after time to raise taxes on all Americans.

As John McCain said in the last debate (and as we said in a previous entry), our current tax cuts are not just for the wealthy. They're for everyone. That seems pretty fair to us.