Obama and Investment Taxes

The Dublin Intrade market has Senator Obama as the prohibitive favorite in the Democratic primary and as the favorite for President of the United States in the general election in November.  So we ought to pay careful attention to what he would do with taxes once in office.  As far as I can make it out he would 1) raise the top income tax rate to 39.5%, 2) lift the cap on payroll taxes for higher incomes that, added to 1) would increase the top marginal tax rate to around 52%, 3) increase dividend taxes to 39.5% from 15%, 4) increase capital gains taxes to 28% from 15%, and 4) increase the top estate tax rates to 55% from 45%.  Added together it would be one of the largest tax increases (by rate or by application) in American history.  This in the teeth of an economic slowdown and in the teeth of new competition from very capable and determined international opponents (the EU, China, India).  Particularly distressing in this package is an increase in what I call the investment tax -- those who choose to invest in United States industries will pay much higher taxes on those returns.  States are desperate to attract capital -- to the point of offering absurd tax rebates to those who offer to invest in a local factory or office -- and Sen. Obama is set to penalize those same investors who invest in the United States.  We cannot have it both ways folks. Penalties on investment will drive marginal investment offshore or limit it in other way (drive it into munis).  This is a potentially crippling gaff.