By Douglas V. Gibbs
Reading through the main-extreme media the leftists are asking why anyone isn't talking about Obama's tax cuts. Problem is, there is no such thing as Obama tax cuts.
Temporary tax credits are not tax cuts. Taxes are cut when the actually tax rate is reduced. Bush did that in 2003. Now those cuts are set to expire, and Obama wishes for the taxes on the wealthy (you know, the folks that create jobs?) to increase, and for the reduced taxation to remain in place for the Middle Class, in the hopes that such a move will encourage consumerism.
By calling for the tax rate reduction on the Middle Class not to expire, people are calling it Obama's tax cut.
How is that a tax cut? It is simply a denial of allowing the taxes to increase. There is not any "cut" about it.
In reality, the Democrats are setting us up for more tax increases.
Increasing taxes does not increase revenue, it actually reduces revenue because when you tax an activity, you receive less of that activity. Besides, the problem in Washington is not a revenue problem, it is a spending problem. The revenue is more than adequate. The spending is out of control, and much of it is unconstitutional.
Tax increases stagnate economies, and stifle the private sector. Despite a small increase in the GDP, despite the false claim the recession is over, our economic woes continue. Fact is, when the government sector grows, the GDP will be affected in a small way. But if the unemployment rate is not dropping, and the private sector is not growing, the economy will continue to struggle regardless of the GDP numbers. Fact is, in order for us to depart from our economic difficulties, the private sector must grow. To do that, we must reduce taxes, reduce regulations, and get government out of the way of the Free Market. Then, when not tethered by an oppressive federal government, the private sector will grow, the supply-side will increase production, and jobs will be created. As long as the Democrats tax and spend, the chance of a looming deflationary depression increases. Some even believe, such as my guest Bob Chapman on my upcoming episode of Political Pistachio Radio this coming Friday, that we are already deep into a period of economic depression.
According to the Heritage Foundation, before the recession, federal spending totaled $24,000 per U.S. household. President Obama's FY 2011 budget would hike it to $36,000 per household by 2020 — an inflation-adjusted $12,000-per-household expansion of government. But spending is just one-half of this White House's economic plan. Massive wealth-distributing tax hikes are the other half of President Obama's wish list, and they are just as big a threat to our nation's economy.
Whenever the rich are taxed, it is not only the wealthy paying those taxes. Economic life at all levels is tightly interwoven, and tax increases for one segment of the population will ultimately affect everyone. Businesses don't pay the increase in taxes, they pass it down to the consumers in higher prices, while laying off workers to ensure their profit margin does not decrease.
The Heritage Foundation’s Center for Data Analysis has run simulations using their Individual Income Tax Model comparing current law with President Obama’s most recent budget proposal which includes: 1) higher taxes on individuals earning more than $200,000 and couples earning more than $250,000; 2) higher taxes on capital gains; 3) higher taxes on dividends; and 4) the return of the death tax. The CDA found that the Obama tax hikes would:
- Destroy an average of 693,000 jobs every year.
- Drain $726 billion from disposal income, $38 billion from personal savings, and $33 billion from business investments.
- Raise taxes on the 55% of all joint filers earning more than $250,000 who run small businesses that employ others.
- Cost the average non-farm small-business owner $3,500 more in taxes.
- Cost the 49% of all seniors with income below $250,000 $525 in additional dividend taxes.
- Cost the 25% all seniors with income below $250,000 $742 in higher taxes.
In the end, the entire spectrum of the American populace will suffer from the plans of higher taxes on wealthier Americans, and a continuation of high spending. The unemployment rate is high, life is already difficult, and now these idiots plan to hit us with higher taxes, while refusing to decrease spending. The result can only be disastrous.
-- Political Pistachio Conservative News and Commentary
The Economic Toll of the Obama Tax Hikes - Heritage Foundation
TimesCheck.com: Krugman Views Tax Cuts as an "Expensive Proposition" But Not "Stimulus" Legislation - Get Liberty
Obama Even Gets Tax Cuts Wrong - Net Right Daily
Obama's GDP Grew Because the "G" Now Stands for "Government" - Rush Limbaugh
Recession over? - Economic experts say it ended 15 months ago, but pain continues - Whittier Daily News
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