So I know nothing about blogging, but here's my finest effort. In the interest of full disclosure, I am a conservative who will cast a vote in two weeks for John McCain and Sarah Palin.
Barack Obama has recently said that he believes that this economy has to be built from the "Bottom Up". One would have to be intoxicated to believe that this economic strategy of "spreading the wealth" will lead to anything other than shared misery.
In a campaign filled with mistruths, Obama's most damning may well be his assertion that under his tax plan, "95% of Americans will receive a tax cut". All the while, his running mate Joe Biden is telling us that it is "patriotic" to pay taxes. So which is it? Lets take a closer look at the Obama tax plan, but before we do that, a few facts:
The top 1% of wage earners in this country pay 40% of all income taxes.
The top 50% of wage earners in this country pay 97% of all income taxes.
The bottom 50% of all wage earners in this country pay only 3% of all income taxes.Now, we can get into the merits of a "Flat Tax" another day. But for now, this progressive tax system is what we have to work with.
Obama thinks the "wealthy" should pay more. Understand, Obama categorizes "The Wealthy" as anybody making more than $250,000 annually. I ask, how do you give a "Tax Cut" to many folks who don't pay any taxes to begin with (see statistics above, verifiable on the IRS website)? Isn't that in fact, just another form of welfare? Don't we already PAY TAXES to fund welfare?
Getting back to Mr. Obama's tax proposals...He has said that he will raise the capital gains tax. Capital gains taxes are those taxes one would pay on the difference between what one paid for an investment, and what one gained on that investment when sold. These taxes are levied on the sales of mutual funds, bonds, stocks, real estate, precious metals, etc. In this market, is it really wise to discourage investment by raising the tax rate on profits made on such investments? We need people who are financially capable, to continue investing in our markets. Discouraging investment by raising taxes would be catastrophic to an already suffering economy. By the way, John McCain has recently suggested cutting the capital gains tax in half, to 7.5%, for the next two years.
Let's talk a minute about corporate taxes. What was the last corporation you knew that actually PAID taxes? That's right - not a one. That's because as their taxes increase, they pass that little gift from the government on to you and I (Like the toaster oven in "Old School" - the gift that keeps on giving!). Your Pumpkin Spice Latte from Starbucks suddenly goes from $3.89 to $4.05. Or, they may also be forced to lay people off in order to offset their suddenly higher costs of doing business. I cannot stress enough - corporations do not pay taxes...we pay their taxes for them. Barack Obama will raise taxes on all businesses making more than $250,000. There are approximately 25 million small businesses in the U.S., accounting for 99% of all employers, and employing more than 50% of the private work force (
http://www.eeoc.gov/ada/adahandbook.html).
I received a call from a local democratic volunteer last week. He seemed like a very nice guy, and we had a good conversation. After a few minutes, the conversation transitioned from local to national politics. He was making his points about raising corporate taxes and how that would be good for everybody (again, the fairness theme)...I asked him, "what would keep those businesses from either laying people off or moving operations to a more "tax friendly" country?". His response was startling..."Well, I think there are certainly carrots that we can throw out there to keep companies here...And you understand, MEN AND WOMEN make the laws...So there's legislation we can put in place to keep them here". What?!?!? You're going to raise their taxes, then implement laws that will require that they stay, or face even stiffer penalties? Is this the United States of America, or the old Soviet Union?
For those who have read to the bottom, I thank you and hope I haven't offended anyone too much. I live in Connecticut, a state where Mickey Mouse would have no trouble getting elected if he were the democratic candidate. So, this is a forum that allows me to say the things I'd like to say, without shoving my thoughts down anyone's throat.
The last point I will make on this initial entry...Barack Obama loves to compare himself to John Fitzgerald Kennedy. Somebody should remind Mr. Obama that it was none other than John Kennedy who said:
"Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government." - John F. Kennedy, January 1963
Put in a more concise manner, President Kennedy was saying that the only way to increase revenues to the federal government, is to decrease taxation.
This economy cannot be built from the bottom up, and there is no such thing as "fairness" in life.