Tuesday, October 14, 2008

Does Obama Recognize the True Definition of A Tax Cut?

According to an Op-Ed in The Wall Street Journal yesterday, Barack Obama is still struggling with defining the true meaning of a tax cut. Obama believes a tax cut goes to 95% of "working class" families, while he imposes a tax on the other 5% (especially surprising since one third of all Americans do not pay income taxes). Supposedly, tax cuts are designed to be applicable for everyone who pays taxes. Apparently, Obama has not received this memo. You see, Obama subscribes to the liberal ideology of tax credits, which are government handouts (similar to the bailouts) and mini-expansions of the government.

Obama's proposed tax credits, include:
• $500 tax credit ($1000 per couple) to "make work pay"
• $4000 tax credit for college tuition
• 10% mortgage tax credit (another bailout, my friends)
• a "Clean Car" tax credit up to $7000 on certain vehicles (i.e. hybrids, electric, tire gauges...had to throw that one in their for good measure)
The last credit is particularly interesting, since you could receive this credit, even if you do not pay income taxes. Now, this is odd. I thought you were supposed to pay taxes, in order to receive incentives or credits.

Another surprising statistic from this article is that Obama's tax plan would essentially raise the payroll tax on American workers, thus taking more money out of the pockets of hard working families.

I don't get it! Obama was supposed to stand for change, but the only change you'll see is the loss of change from your pockets.

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