Betting on higher taxes?

By February 13, 2008Taxation

Think your taxes are going to go up? Want to bet on that prediction? Now you can. According to Bloomberg, Intrade has a new market that lets you trade contracts on how much more you think you’re going to be paying in taxes in the near future. The prediction market currently focuses on the top marginal rate – which is 35 percent. Traders can buy shares predicting that the rate will skyrocket to 42 percent in 2009, 2010 or 2011.

Under current law, the Bush tax cuts are set to expire in 2011. If Congress and whoever is President at the time let that happen, the top rate will go back up to 39.6 percent. Both Obama and Clinton have offered up additional tax increases to pay for new programs including universal health care plans and universal pension plans. If either are elected president – 42 percent might be a better bet…

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