One of Obama’s best economic policy positions is to *completely* eliminate the capital gains tax on new startups.

that is a great idea. Kind of sounds like a pro-growth Republican idea.

We are now at the end of the campaign. McCain had his chance, and failed to come up with anything that makes sense on space policy — that suggests he has even thought about the issue in a couple years. Considering that McCain is the former Chairman of the Senate Commerce Committee which had NASA oversight responsibilities, this is sad.

Obama has the best space policy position. That is why Diamandis is endorsing him.

FWIW,

– Al

Under “Space Science and Exploration” and “Closing the Gap”, the Obama campaign’s space policy explicitely states:

“Using the Private Sector: Obama will stimulate efforts within the private sector to develop and demonstrate spaceflight capabilities. NASA’s Commercial Orbital Transportation Services is a good model of government/industry collaboration.”

See (add http://www):

.spaceref.com/news/viewsr.html?pid=28880

“In any case, Obama’s tax increases will be devestating to the kind of small, entrepeneurial businesses new space advocates seem to favor.”

They are certainly disincentives to reinvesting profits in new capital, but five percent tax increases hardly rate hyperbole like “devestating [sic]”.

“If Diamandis does not realize this, he should.”

These emergent space flight companies aren’t profitable yet. There’s nothing to tax, so tax rates, especially marginal changes in tax rates, don’t matter to them.

What matters is revenue. They need customers. And the Obama campaign’s space policy indicates that his administration would continue to and increasingly be a customer of these companies.

This is not terribly complex business economics — it doesn’t require an entrepreneur like Diamandis to figure it out.

FWIW…

Not that anyone should hold much store in anything Barack Obama promises, but I wonder when that happened. In any case, Obama’s tax increases will be devestating to the kind of small, entrepeneurial businesses new space advocates seem to favor. If Diamandis does not realize this, he should.

I can’t speak for Diamandis. But to the extent Diamandis thought it through, I would imagine that the Obama campaign’s proposed 4.6% increase in income tax and 5% increase in capital gains/dividends taxes for the highest earners is outweighed by the Obama campaign’s explicit endorsement of private sector spaceflight capabilities and the COTS model in particular. Much-needed increases in revenue (or any revenue) at the top line are arguably much more important for these emergent space flight companies than marginal changes in tax rates affecting their bottom line.

FWIW…