I repeatedly hear over and over about Barack Obama’s tax plan and how he will provide “tax cuts” for 95% of American families. Folks, nearly 50% of American’s do not pay taxes. Zero. What Barack is doing is reaching into American’s pockets, taking their money, then redistributing how he sees fit. His “tax cuts” for the middle class are stimulus checks. I finally heard a glimmer of hope last night from Sarah Palin when she mentioned that this is wealth redistribution.
And I repeatedly hear how he will only increase taxes on the filthy rich individuals and greedy corporations. But many of the “individuals” who will be above the $250,000 threshold will be small businesses. And put yourself in the shoes of the owners of that small business, or for that matter that greedy corporation. What will be the first thing to go if your taxes are raised? If it were me I would probably limit pay raises next year. Last year the median household income in America was just over $50,000. And the average pay raise was around 4%. Doing the math that would be an average yearly pay increase of $2,000. This is double what Obama has promised. And then look at the other portion of the filthy rich bracket. Do you honestly believe they will invest in anything if the capital gains tax is increased to 28% as Barack Obama has suggested?
But most importantly will be the impact on the economy. He has proposed a spending plan that will be between $200 – $350 billion in increased government programs. And to fund these programs he is looking for the tax increases mentioned above. But those taxes won’t be there. The corporations profits are decreasing and so to will the tax revenue. The capital gains (stocks, mutual funds, etc.) are decreasing and so to will the tax revenue.
So what will Barack do? Well he can decide to limit those programs he has proposed (but when pushed in the Presidential debate he failed to list even one), or he can start lowering that bar that he deems to be the filthy rich. Where does it stop? $200,000? $150,000? $100,000? I truly believe that an economic plan like this is never right for America, but as I watch a $700 billion bailout package get approved in the House of Representatives, it’s suddenly become not just wrong but dangerous.
In my opinion McCain and Palin are missing an opportunity to go on the offensive. They need to shout this message out loud and clear. The middle class is not looking for a hand out, they want a hand up. By keeping taxes low, a middle class American is more likely to keep a job that will have a pay increase that will be larger than Obama’s government give-aways could ever be. And it’s something that will last.