28 October 2008

Obama's Tax Lies

The American Thinker has an article by a small business owner who baby-steps us through Obama's four Tax Lies. While the world "lie" is a bit harsh - let's borrow some funky adjective constructions from the "Anointed One" and say he's being "nondisclosetive" when he claims that 95% of us will get a tax cut.

Outside of it being mathematically impossible, when only 40% of tax-filers actually pay taxes - Obama is doing the traditional politician skinny shuffle and not being forthright in what his plan entails.

From the article:
The first loophole was easy to find: Senator Obama doesn't "count" allowing the Bush tax cuts to lapse as a tax increase. Unless the cuts are re-enacted, rates will automatically return to the 2000 level. Senator Obama claims that letting a tax cut lapse -- allowing the rates to return to a higher levels -- is not actually a "tax increase." It's just the lapsing of a tax cut.

My Federal Income Tax will increase by $3,824 when those tax cuts lapse. That not-insignificant sum would cover a couple of house payments or help my two boys through another month or two of college.

For a married family, filing jointly and earning $75,000 a year, this increase will be $3,074. For those making just $50,000, this increase will be $1,512. Despite Senator Obama's claim, even struggling American families making just $25,000 a year will see a tax increase -- they'll pay $715 more in 2010 than they did in 2007. Across the board, when the tax cuts lapse, working Americans will see significant increases in their taxes, even if their household income is as low as $25,000. See the tables at the end of this article.

Senator Obama is willfully deceiving you and me when he says that no one making under $250,000 will see an increase in their taxes. If I were keeping score, I'd call that Tax Lie #1.

The next loophole involves the payroll tax that you pay to support the Social Security system. Currently, there is an inflation-adjusted cap, and according to the non-profit Tax Foundation, in 2006 -- the most recent year for which tax data is available -- only the first $94,700 of an unmarried individual's earnings were subject to the 12.4 percent payroll tax. However, Senator Obama has proposed lifting that cap, adding an additional 12.4 percent tax on every dollar earned above that cap -- and in spite of his promise, impacting all those who earn between $94,700 and $249,999.

By doing this, he plans to raise an additional $1 trillion dollars (another $662.50 out of my pocket -- and how much out of yours?) to help fund Social Security.

Senator Obama has also said that he will raise capital gains taxes from 15 percent to 20 percent. He says he's aiming at "fat cats" who make above $250,000. However, while only 1 percent of Americans make a quarter-million dollars, roughly 50 percent of all Americans own stock – and while investments that are through IRAs, 401Ks and in pension plans are not subject to capital gains, those stocks in personal portfolios are subject to capital gains, no matter what the owner’s income is. However, according to the US Congress’s Joint Economic Committee Study, “Recent data released by the Federal Reserve shows that nearly half of all U.S. households are stockholders. In the last decade alone, the number of stockholders has jumped by over fifty percent.” This is clear – a significant number of all Americans who earn well under $250,000 a year will feel this rise in their capital gains taxes.

Under "President" Obama, if you sell off stock and earn a $100,000 gain -- perhaps to help put your children through college -- instead of paying $15,000 in capital gains taxes today, you'll pay $20,000 under Obama's plan. That's a full one-third more, and it applies no matter how much you earn.

No question -- for about 50 percent of all Americans, this is Tax Lie #3.

Finally, Senator Obama has promised to raise taxes on businesses -- and to raise taxes a lot on oil companies. I still remember Econ-101 -- and I own a small business. From both theory and practice, I know what businesses do when taxes are raised. Corporations don't "pay" taxes -- they collect taxes from customers and pass them along to the government. When you buy a hot dog from a 7/11, you can see the clerk add the sales tax, but when a corporation's own taxes go up, you don't see it -- its automatic -- but they do the same thing. They build this tax into their product's price. Senator Obama knows this. He knows that even people who earn less than $250,000 will pay higher prices -- those pass-through taxes -- when corporate taxes go up.

No question: this is Tax Lie #4.

There's not a politician alive who hasn't be caught telling some minor truth-bender. However, when it comes to raising taxes, there are no small lies. When George H.W. Bush's "Read my lips -- no new taxes" proved false, he lost the support of his base -- and ultimately lost his re-election bid.

This year, however, we don't have to wait for the proof: Senator Obama has already promised to raise taxes, and we can believe him. However, while making that promise, he's also lied, in at least four significant ways, about who will pay those taxes. If Senator Obama becomes President Obama, when the tax man comes calling, we will all pay the price. And that's the truth.



But hey! Don't confuse the Obama-bots with the truth! They're too busy "making history" by voting for this inexperienced empty suit.

Meanwhile, Obama's cohorts are already lining up new tax proposals. Barney Frank announced that military spending will be cut by 25% and that a tax hike is inevitable. Frank and the Pelosi run congress are also pushing for a new stimulus package to go into effect after the elections.

Gee...where is that money going to come from? We already have $59 trillion of unfunded obligations on the US balance sheet thanks to Democrats B. Frank, C. Dodd and C. Schumer. The new package, which would cost you $300 billion, would follow hard-upon the $168 billion stimulus passed in February AND the $700 billion Wall Street rescue passed less than a month ago.

And add on top of that - Obama's tax increases, his lapse of the tax cuts (an inverted tax increase), more stimulus package(s), and now Ted Kennedy is scheming from his bed how to get a drink um, .... I mean to get more of you to agree to Nationalized Healthcare.

And finally, Wisdom from The Corner points out the obvious viz-a-viz Paul Krugman. Suddenly Krugman wakes up and sees that under Obama's plan, the second highest tax bracket starts at $182,400. What happened to the endless chant of "only those over $250,000 will pay"? And they also remind us that this was promised and tried under Bill Clinton under the auspices of a tax surcharge on "millionaires." Remember the Halcyon days of Slick Willy?

NOTE TO TEDDY: If Nationalized Healthcare is so great in places like Canada and Great Britain, why didn't you go there to get the lump removed from your brain?

We are living in a soft-tyranny right now folks. We keep electing leaders who want to grow government at your expense. We need to get back in touch with conservative principles: smaller government, fiscal responsibility, less taxes, less regulation and less judicial activism in the courts.

8 comments:

Anonymous said...

It doesn't matter who's in the White house. It's just the same old song and dance. Why is everybody scared of Obama? He'll just be another lackey of the same old system. The blackman is blind if he thinks things will change for him.

nobama please said...

ANYBODY who votes for this asshat Obama deserves what they get.

Anonymous said...

ANYBODY who votes for this asshat Obama deserves what they get.

1:37 PM

ANYBODY who voted for the present Commander-in-Chief deserves what they got:

sky-rocketing (until last weeks) gas prices

national economy that is out-of-control

national debt the highest in history

an armed invasion that is costing taxpayers billions

higher tax bills for us in future years thanks to his incompentent decisions

Anonymous said...

I am no fan of Bush. However, the Senate/Congress is controlled by Democrats. You lay the entire ills of the country at the feet of George Bush. The fact remains the country is in bad shape for sure, who is going to lead us out of this mess when the president and the congress to not get along. Don't say Nancy Pelosi. She's a huge douchebag.

Anonymous said...

Ho Ho Ho I heard that all the cops who have their days off canceled will have to drive their personal cars down to the assembly point. So where do they park all these cars? The meter maids are going to write any illegally parked cars down there. So work 12 hrs. have car ticketed and towed, net money made, ZERO!

Coldtype said...

Sigh... what will it take for you to see the light Rue? Let's contrast centrist Obama with the straight dope.

Barack H. Obama POTUS said...

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Anonymous said...

http://www33.brinkster.com/iiiii/inventions/