We’ve all heard Barack Obama talk about this 95% tax cut for the “middle class” but is this tax plan legitimate? And can he actually cut taxes for 95% of the people when 30% don’t even pay taxes? I’m going to debunk yet again Barack Obama’s economic plan. Keep in mind I’ve been debunking his economic proposals since the Democratic Primary when he was talking about wealth redistribution.
- 95% Tax Cut:
Fact: You cannot cut taxes for 95% of the folks when 30% pay little to no taxes at all. During an economic slowdown refundable tax income and taxing the top percentage of Americans will further decrease the growth rate of the economy.
- Three Year Tax Cut For Small Businesses
Fact: What Barack Obama fails to mention is that once those small businesses and employees start earning 250,000 and above he’s going to roll back those tax cuts and start increasing the overall taxes on those small businesses. What you want to do, especially when larger corporations and banks are slashing jobs is ensure the steady growth of small businesses because they remained steady during this economic slowdown. Not only that but they provide a large number of jobs in America. Whether it be construction, development, or small restaurants.
- The CGT:
Fact: Barack Obama is going to either keep the CGT at 28% or raise it depending on how “fair” the economic system treats the “middle class”. He has stated several times that he will strongly consider raising the CGT. What he doesn’t know is that when you raise the Capitol Gains Tax you not only prevent growth among the top 5-10% but that slowed growth will eventually trickle down to the middle and lower class. Barack Obama always talks about trickle down, bottom up this and that, he should have known about raising the CGT and the effect it will have on all Americans.
Fact: Barack Obama talked about reining in spending an yet he proposes a domestic package that would cost around 800 billion a year. He also wants to spend 15 billion a year on energy. Barack Obama doesn’t realize that during economic uncertainty the last thing you want to do is increase the rate of overall spending. The problem with Government now is that they’ve increased their spending power. He also wants two more stimulus packages that would probably cost another couple billion dollars. You can’t say you’re going to roll back the excessive spending of the Bush administration and then on the other hand lay out 815 billion total in new spending. Add to that new government programs that deal with education. He wants to ensure every young American can afford college by basically shelling out another couple billion in college expenses and scholarship funds.
- Defense Spending
Fact: Barack Obama is going to cut defense spending because he needs as much money as he can get in order to pay off his proposed 815 billion dollar a year domestic package.
- Lowering Taxes
Fact: Barack Obama is lying when he says he going to cut taxes for 95% of Americans. When you propose a large package like he has you have to raise taxes in order to fund that package. You can’t continue to tax the top 5-10% because that number is rather small compared to the funds you would need to pay for a 850 billion dollar package. So what he is going to do is slowly overtime tax the rest of us along with the rich. Now he might continue to redistribute the income of the upper class but he will eventually raise taxes on all of us. He has no other choice but to do so.