Monday, November 10, 2008

Obama: Who will I tax first?

You know the famous statement: "Democrats like to tax everything. When something is born, they tax it. When a business grows, they regulate it. When something dies, they subsidize it." Well, the very first thing President-elect Obama wants to do is start working on jump starting the economy, and his plan is to provide tax relief for the middle class. I guess that tax relief will be in the form of economic stimulus checks, which will have to paid back to the government. So, it appears that taxes will no doubt increase.

The Dallas Morning News reports that Obama also has his eyes, not just on the economy, but on health care and education reform, as well as withdrawing troops from Iraq. All things that will cost the United States more debt over time. The enacting of these reforms are only going to cause the economy to spiral further in decline.

Hopefully, Obama will reach across the aisle and seek common sense proposals that will help put America back on the right track. Taxing people in a troubled economy will only result in more people who will be poverty stricken or deciding whether they will have to choose between rent or food.

3 comments:

Contrarian Profits said...

Following an historic election, let's take a moment to examine just what an Obama presidency will mean to the United States - what we have to look forward to, and how he will deal with our current economic issues. According Jim Davidson, some of the numbers just don’t add up:

"One of Obama’s specific proposals is to raise the capital gains and dividend taxes to 25%, which will sharply increase capital confiscation as increasing percentages of “gains” will reflect inflationary depreciation of the currency. In the U.S., an investor must pay tax on the difference between the sales price of an asset and it purchase price, with no adjustment for inflation. Consequently, when the tax rate and inflation are high, a large portion of the “capital gain” is illusory. Any asset that appreciates by less than the rate of inflation will result in its owner losing purchasing power and having to pay taxes on the illusory gains. At Obama’s higher tax rates, (he has suggested that capital gains and dividend taxes should be hiked to as much as 25%,) capital confiscation would result from modest levels of inflation.

And the Great Credit Crunch implies that inflation will be far higher than in recent experience.

Setting aside whether it is moral or equitable to force a small fraction of the population to essentially pay for the whole cost of government, much of which entails the shuffling of checks to purchase votes of various aggrieved groups, there is a bigger question. Can it be wise for the whole fiscal regime to stand on the shoulders of a small group, like a pyramid tottering on its point, so that any tribulation which undermines the prosperity of those who pay would promise to bankrupt the state?"

The Danger Lurking Behind Obama’s Tax Policy

colorful squid said...

People will be steeped in beast worship and they will wake up when it's too late. Not all that glitters is gold.

Mike K said...

Even withdrawing out of Iraq will cost more money? News to me.