Yesterday was the seventeenth of April, and, because of Emancipation Day Monday giving the American taxpayer two extra days, my taxes are off to the Treasury. What better day to discuss the subject of Obama and his taxes? For the last couple of months, all you hear from Obama is “fair share” or “millionaires and billionaires” or some such nonsense. He campaigned with the premise that Americans making less than $250,000 per year wouldn’t see a tax hike, but many of the policies debunk that promise. Since government produces nothing, taxes are how they fund things, so they are a necessity. Do they hurt the economy or help?
Politicians, other either party affiliation, love to spend money. Obviously, that money has to come from somewhere, especially since the government creates nothing toward the economy. To avoid a complete failing of the economy, liberal politicians scream that they need to raise taxes. It is their mantra! The problem is that history shows that as you raise taxes, you lower the revenue coming into the Treasury. The Reagan Presidency showed that lower taxes actually increases revenue. The economy improves , businesses grow and hire more people and produce more products. This results in higher revenue despite lower tax rates. That alone shows that tax hikes hurt the economy.
The Tea Party followers say, “The government has a spending problem, not a revenue problem.” When Obama came into office, the economy was in decline. He spent $787 billion on his stimulus plan, designed to put Americans back to work, but the unemployment rate rose to over 9%. Some of that money went to funding alternative energy sources and we continue to lose money on that proposition. The government bailed out Chrysler and General Motors, telling us those companies would pay their loans back. We lost money on that deal also, although Obama touts it as a success. If this is a success, we can’t afford too many more of those. Then, along comes Obamacare, with more taxes or fees, depending upon whom the argument is being broached. You have the payroll tax argument, which is actually a misnomer, since the cut is actually coming from a taxpayers contribution to Social Security. Social Security is going bankrupt, so let’s speed it up about 2%. Every problem that comes up, through no fault of Obama’s (so Obama tells us), the call goes out to raise taxes. There are those who don’t pay their fair share.
To this clarion call, let me say there are quite a few flaws. First, as of April 1st, the United States has the highest corporate tax rate in the world. This means companies find it more expensive to do business. As companies move to more company-friendly countries, the Treasury receives less revenue and Americans lose more jobs. Of course, Obama will blame that well-publicized corporate greed! He is oblivious of the fact that if the government lowered the corporate taxes, it would be in a company’s best interest to stay, or for a foreign company to come to America, there would be a larger requirement for workers, resulting in more revenue to the Treasury. Anyone see a pattern developing?
Secondly, in order to be included in the top 1%, you only need to make $380,000. That group, the reviled of the Occupiers, paid more than 38% of all federal income taxes, while earning only 20% of the income. Those in the top 10% (making $114,000 or more) paid 70% of the taxes. On the other end of the equation, the bottom 50%, making less than $33,000, earned 13% of the income, but paid only 3% of the taxes. It’s obvious that Americans pay enough money to the government in the form of taxes. In return, we watch as the government wastes our money on stupid stuff, like the GSA party or the long list of solar companies that have failed after receiving billions of dollars! There’s that spending problem again.
Still, the liberal call for higher taxes continues. In response, the American taxpayer will be hit hard next January, 2013 by a huge “Taxmageddon”, to the tune of $494 billion! That includes, among other things, the expiration of the 2001 and 2003 Bush Tax cuts, the payroll tax cut, the patch of the Alternative Minimum Tax, the ability for businesses to fully expense capital investments, and the tax cuts from the 2009 stimulus. Add to that the arrival of the new taxes from Obamacare, then tack on the increase of the death tax, up to 55%, while the exemption falls. Obama is on the campaign trail, constantly, saying we need to tax the millionaires and billionaires, that they aren’t paying their fair share. Yesterday, Eric Cantor (R-Va) called him out, saying that if there was a disparity in the tax rates of the “rich” and the middle class, why not lower the rate of the middle class. Sounds good to me!
In the long run, as long as the politicians at federal, state and local levels decide that the spending must continue at a rate far outpacing the level of income, we will have them calling for higher taxes. The government under Obama has squandered our resources in so many ways. In the three and a half years he’s been in office, he has wracked up over $5 trillion in deficit spending. Currently, our national debt is rapidly approaching $16 trillion. With his programs unstopped, by the end of 2016, the debt will be close to $21 trillion. Put another way, our grandchildren’s taxes have already been spent, two generations early. Stop the madness now!
marjarhead1 