Mr. Obama has been attempting using his “95%” tax cut as a cudgel against Republican’s. This disingenuous claim is a political tactic designed as an attempt to nullify the Republican policy pillar of lower taxes and smaller government. While there have been several attempts to reveal the wizard behind Mr. Obama’s economic curtain, this is probably the best explication thus far. Witness the following from the very knowledgeable folks at the Wall Street Journal;
One of Barack Obama’s most potent campaign claims is that he’ll cut taxes for no less than 95% of “working families.” He’s even promising to cut taxes enough that the government’s tax share of GDP will be no more than 18.2% — which is lower than it is today.It’s a clever pitch, because it lets him pose as a middle-class tax cutter while disguising that he’s also proposing one of the largest tax increases ever on the other 5%.(snip)
More fun with semantics and numbers below the fold.
Since one third of Americans don’t pay any taxes, we have all been curious how “95% of all Americans” get a tax “cut”? The WSJ takes the covers of some new Obama economic nomenclature and explains this;
For the Obama Democrats, a tax cut is no longer letting you keep more of what you earn. In their lexicon, a tax cut includes tens of billions of dollars in government handouts that are disguised by the phrase “tax credit.” Mr. Obama is proposing to create or expand no fewer than seven such credits for individuals:
You will have to read the article in order to see the whole eye opening list. However, when the government provides a handout, courtesy of your taxes and also redistributes it to others with no tax liability it is now, in Obama economic speak, a tax “cut”. I would only ask what is next, defining taxes as payment for deferred services?
It’s always helpful to understand the meaning behind Obama’s alleged economically melodious speech. In this case, it is the Sirens drawing you to the rocks.