Obama Would Raise Taxes Starting at $6,100
by James Buchanan
Over the last several weeks, we’ve all seen the Obama commercials claiming that he would cut taxes for 95 percent of Americans. There’s just one little problem with that. He’s lying. What Obama fails to mention is that he plans to allow the Bush tax cuts to expire. This would RAISE taxes on people earning as little as $6,100. All income earned above $28,400 would be taxed at a rate two percent higher than the current tax system.
The website Yahoo answers notes:
Question
“Will Obama repeal Bush’s tax cuts?
If so then how does he claim 95% will get a tax cut by him?
Answer
He will let them expire effective January 1, 2011, making his claim to lower taxes for 95% a total fabrication.”
Funny how this has gotten virtually no mention on the mainstream media. A few right wing talk show hosts have mentioned this, but it’s not getting nearly the attention it deserves.
Raising taxes on people in the middle class and even the “working poor” class will be quite a shock to many Americans, who took Obama at his word, but it shouldn’t be. The Democrats ALWAYS stand for higher taxes on working people. The Democrat Party considers life-long welfare recipients and illegal aliens valuable Americans and the future of the Democrat Party.
Obama has announced that he wants to give tax breaks to people who aren’t paying taxes. Technically, these would really be “hand outs” or welfare or “spreading the wealth around.” How will Obama do this? He will simply jack up the taxes on people making over $250k to create hand outs for people, who don’t pay taxes.
Being a Socialist, Obama doesn’t seem to realize that people making over $250k tend to be business owners. The more they’re taxed, the less they work. If the government takes away too much profit, the business owners may just close down the business completely, retire and lay off all the employees. Barack Obama has never run a business so he doesn’t understand any of this.
If you tax rich people too much, they tend to run away to another country with lower taxes. If you had a million dollars, and Mr. Obama started talking about his desire to “spread the wealth around,” would you stick around and let him take your money or would you start making plans to leave the US? That’s why every liberal tax increase always lands on the middle and upper class taxpayers because these people can’t afford to run away if their taxes go up.
Not only is Barack Obama a Socialist; he is a dull-witted Socialist. Recently, a reporter asked Obama why he wanted to raise a certain tax, knowing that government revenue would fall off if he did this. Obama replied that he wanted to raise that tax because it was the fair thing to do.
There is something called the “Laffer Curve.” Every politician and graduate of an Economics 101 college course should know about this. One source notes “the Laffer curve is used to illustrate the idea that increases in the rate of taxation do not necessarily increase tax revenue. Since a 100 percent income tax will generate no revenue (as citizens will have no incentive to work), the optimal tax rate that maximizes government revenue must lie below 100 percent. Increasing taxes beyond that point would decrease tax revenue. The Laffer curve was popularized by Arthur Laffer (b. 1940) in the 1980s.”
Now it is just flat out STUPID to raise the tax rate above the optimum rate on the Laffer Curve. The government gets less revenue and people start slacking off and working less because they feel they’re being taxed too much. Unfortunately, there are a lot of liberal politicians who still don’t understand the Laffer Curve to this day, and apparently Obama is one of them.
So Obama is lying about who he is going to raise taxes on. People earning as little as $6,100 per year will see more taxes. Obama is going to punish business owners with a big jump in their taxes just as a recession is developing, which will mean more lay offs and a much longer recession. And Obama thinks that people who don’t pay taxes should get “tax cuts” –or more accurately “hand outs” at the expensive of the same “rich people” also known as business owners, who will be having a hard time as the economy slows down.
Obama is the wrong person, who doesn’t understand how a free enterprise system should work. Perhaps he should become a government minister in Kenya or Zimbabwe, where Socialist politicians have been running things for years and where 99 percent of the population is poor.